Helps Homeowners Who Have Reduced Incomes, Missed Payments
WASHINGTON, D.C. – July 13, 2011 – (RealEstateRama) — Even after they find a new job, many North Carolinians who have been unemployed during the economic downturn still struggle to hold onto their homes. They may have either missed payments when they were between jobs or their new job may pay less than they were earning in the past. If a second mortgage is making their monthly payments unaffordable, these homeowners may now be able to get help through the N.C. Foreclosure Prevention Fund™.
Created by the N.C. Housing Finance Agency and financed by the U.S. Treasury’s Hardest Hit Fund™, the N.C. Foreclosure Prevention Fund™ has provided mortgage payment loans to 1,200 unemployed workers since December 2010. Now it offers loans to pay off second mortgages for homeowners who are employed but who, through no fault of their own, are unable to make their monthly mortgage payments because of a prior job loss or reduced income.
The N.C. Foreclosure Prevention Fund™ offers a zero-interest, deferred payment loan of up to $30,000 plus all related fees to pay off an existing second mortgage. This reduces the homeowner’s total monthly payments to a level they can afford. Borrowers must have a good mortgage payment history for six months prior to the hardship.
“Finding a new job may not be enough to prevent a foreclosure if the new job pays less,” said A. Robert Kucab, executive director of the N.C. Housing Finance Agency. “We want to help people hold on to their homes by bridging that gap. Every foreclosure we can prevent helps the state’s economic recovery by protecting property values and the local tax base.”
While the second mortgage loans helps re-employed workers, the focus of the N.C. Foreclosure Prevention Fund™ remains targeted toward unemployed workers or those facing certain other hardships, such as divorce or illness, that require new employment. The Fund makes mortgage payments while qualified homeowners seek jobs or complete job training in a new field. The assistance is 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. [Editor: See www.ncforeclosureprevention.gov/map_50_hardest_hit.aspx .]
Assistance from the N.C. Foreclosure Prevention Fund™ is available from 39 counseling agencies statewide. [Editor: See www.ncforeclosureprevention.gov/map_contact_counselor.aspx to identify counseling agencies in your area.] For more information about their eligibility, homeowners should call a participating counseling agency or the information line, 1-888-623-8631, or go to www.ncforeclosureprevention.gov.
The North Carolina Housing Finance Agency is a self-supporting public agency. It has financed 201,000 homes and apartments in the last three decades, including 84,000 homes for first-time home buyers. To learn more, go to www.nchfa.com or call 919-877-5700 or 800-393-0988.
Press Contact Only:
Margaret Matrone, NCHFA, 919-877-5606, mamatrone (at) nchfa (dot) com
Connie Helmlinger, NCHFA, 919-877-5607, cshelmlinger @nchfa.com