The North Carolina Housing Finance Agency has made its N.C. Foreclosure Prevention Fund available statewide through participating counseling agencies approved by the U.S. Department of Housing and Urban Development. The new program is financed by the U.S. Treasury Department's Hardest Hit Fund.
The fund will make mortgage payments for qualified unemployed workers while they seek jobs or complete job training in a new field. Others, who through no fault of their own, have gotten behind on their mortgage payments because of divorce, illness or other temporary hardship, may qualify for help while they seek jobs to get back on their feet, the agency says. The program is expected to be available over the next three to five years and help 21,000 borrowers.
The assistance will be provided as a zero-interest, deferred loan of up to $24,000 or 24 months of mortgage-related payments. In high-unemployment counties, the maximum assistance is $36,000 or 36 months. Homeowners will resume making their own mortgage payments at the end of the loan period. If the owner continues to live in the home for 10 years, the loan will be considered satisfied and no repayment will be due.