Get Help with Your Mortgage Payment
Earning Less or On a Fixed Income?
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. 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
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.