The NC Foreclosure Prevention Fund is offered by the North Carolina Housing Finance Agency, a self-supporting public agency, using funds provided by the US Treasury.

Earning Less or On a Fixed Income?

earning less or on a fixed income

Funds for this program are limited. The last day for application submission to the North Carolina Housing Finance Agency (the Agency) is July 31, 2019, by 5 pm, so act quickly.


Gathering all documentation necessary to submit an application to the Agency can take up to 60 days. Please note, starting an application is not the same as a submitted application to the Agency. There will be no exceptions for applications not submitted to the Agency by 5 pm on July 31, 2019.


In addition, some housing counseling agencies may stop taking applications due to capacity. If you contact a counseling agency that is no longer working with the program, please contact our call center at 1-888-623-8631 to be redirected to another agency or obtain instructions on how you can apply directly online.

If you’ve lost your job or suffered another temporary financial hardship that caused you to seek a new job and are now re-employed but are earning less and struggling to pay your mortgage as a result, we may be able to help. You also may be eligible if you're now on a fixed income after an eligible hardship. The NC Foreclosure Prevention Fund offers a Principal Reduction Recast/Lien Extinguishment option for homeowners with unaffordable mortgage payments due to an employment-related hardship event.


You may qualify for the Principal Reduction Recast/Lien Extinguishment if

  • You experienced an eligible hardship event—a no fault job loss or reduction in earnings or a divorce, illness, or death of co-borrower—after January 1, 2008, and have since become re-employed earning less than before or have secured a fixed income.
  • You demonstrate a need for assistance by having a current housing payment greater than 25% of your household income.

If you qualify, the NC Foreclosure Prevention Fund can provide a forgivable, no-interest, deferred loan to reduce your principal and then have your loan recast so that your mortgage payments are lower.


You do not need to be behind on your mortgage payments to seek help. If your account is delinquent, the NC Housing Finance Agency may place a temporary stay-of-foreclosure for up to 120 days once your application is received and your eligibility confirmed so that the company that owns your mortgage cannot foreclose on your home or take other legal action while your application is under review.


If you remain in your home for 10 years, the loan will be forgiven, and you do not have to pay it back. After you have lived in your home for five years, the loan is reduced by 20 percent a year for years six through 10 until you owe nothing. You repay the total amount only if you sell or refinance the home in the first five years, and only if the sale proceeds are sufficient to repay it.


Please note that if you refinance your property for better loan terms, we will subordinate our second mortgage; however, if you refinance to consolidate debt or take out cash, the second mortgage loan must be repaid.


Find Out If You Are Eligible