Release No. 052814-18
June marks National Homeownership Month, celebrating the many benefits of ownership and what that means to individuals and the community. What National Homeownership Month may not put under the spotlight is the families throughout North Carolina who are facing the devastating challenges of losing their homes to foreclosure.
Enter the North Carolina Foreclosure Prevention Fund (Fund), a service offered by the NC Housing Finance Agency to North Carolina homeowners and an answer for responsible unemployed homeowners who are struggling with their mortgage payments or facing foreclosure.
The Fund, offered statewide and funded by the U.S. Department of the Treasury, makes mortgage payments for qualified unemployed workers, while they look for jobs or complete job training. It was created in North Carolina in 2010 because of high unemployment, which continues to exceed the national average in more than half of North Carolina counties.
“Foreclosure hurts everyone—homeowners, their neighbors, and the State’s economy. It is our hope to keep the dream of homeownership a reality for North Carolinians,” said A. Robert Kucab, Executive Director of the NC Housing Finance Agency. “As we celebrate the many benefits of homeownership, there are unforeseen life events that may jeopardize keeping that dream alive. The NC Foreclosure Prevention Fund offers responsible homeowners a bridge so they can keep their homes while they get back on their feet.”
Homeownership Month recognizes that home provides shelter for families and their treasured possessions, and also means a promising and stable future for their children. The NC Foreclosure Prevention Fund is in place to provide relief in case of temporary hardships, such as job loss, divorce or death of a spouse, requiring you to look for new employment; challenges faced by returning veterans; and workers who suffer a reduction of income.
There is no cost for mortgage assistance, which is offered as
- A zero-interest, deferred loan that pays the homeowner’s mortgage for up to 36 months ($36,000) during job search or retraining;
- A zero-interest, deferred loan up to $36,000, to bring a mortgage current after reduction of income; or
- A zero-interest loan up to $30,000 to refinance a second mortgage for a homeowner who has experienced a reduction of income, in order to lower the total monthly payment to an affordable level.
No repayment is due as long as the homeowner continues to live in the home. Loans for mortgage payment and reinstatement are extinguished after 10 years of occupancy. Second mortgage loans are repaid after 30 years, or when the home is sold, whichever happens first, and no interest is paid.
Free help applying and evaluating other ways to avoid foreclosure is available through 41 HUD-approved counseling agencies located throughout North Carolina.
The North Carolina Foreclosure Prevention Fund is here to help you. For information and a list of local counseling agencies offering assistance, homeowners can go to www.NCForeclosurePrevention.gov or call 888-623-8631.
About NC Housing Finance Agency
The NC Housing Finance Agency, a self-supporting public agency, has financed more than 221,000 affordable homes and apartments statewide since its creation in 1973. The North Carolina Housing Finance Agency's mission is to create affordable housing opportunities for North Carolinians whose needs are not met by the market. It designed the NC Foreclosure Prevention Fund using funds from the U.S. Department of the Treasury. You can learn more about the NC Housing Finance Agency at www.nchfa.com.
About NC Foreclosure Prevention Fund
The NC Foreclosure Prevention Fund helps North Carolina homeowners who are struggling to make their mortgage payments due to job loss or temporary financial hardship, such as divorce, illness or death of a spouse. The Fund also assists returning veterans who are transitioning to civilian jobs. The Fund provides assistance at no cost to you while you search or retrain for new employment. If you or someone you may know would like more information, please visit www.NCForeclosurePrevention.gov or call 888-623-8631.