The N.C. Foreclosure Prevention Fund is offered by the North Carolina Housing Finance Agency, a self-supporting state agency, using funds provided by the U.S. Treasury.

Frequently Asked Questions

 

General

N.C. Foreclosure Prevention Fund

State Home Foreclosure Prevention Project

 

 

General

 

What is foreclosure and when does foreclosure begin?

If my mortgage is not three months late, should I still reach out for help?

If someone claims they can stop my foreclosure if I sign a document naming them as my representative, should I let them help me?

A company has contacted me and said that they can help me avoid foreclosure if I pay them. Should I pay them?

If I don’t have an attorney, who can help me understand my legal rights?

I requested a modification under the HAMP guidelines. I need help with my forms and have questions about the documentation. Who can help?

I received a foreclosure help letter from the N.C. Housing Finance Agency. What does this letter mean?

What can a housing counselor do to help me?

What is foreclosure and when does foreclosure begin?
Foreclosure is the legal process lenders must follow to take possession of a home when mortgage payments have not been made according to the terms of the Promissory Note and Deed of Trust. Most lenders begin the foreclosure process when payments are at least three months late; however, the process can begin sooner.

If my mortgage is not three months late, should I still reach out for help?
Yes. If you have not made regular and full payments according to the terms of your loan or have experienced a job loss or financial hardship that may impact your ability to pay in the future, seek assistance early from your servicer or housing counselor to obtain help in avoiding foreclosure. Do not ignore the problem or delay seeking assistance. Waiting will only worsen the situation.

If someone claims they can stop my foreclosure if I sign a document naming them as my representative, should I let them help me?
You should never sign any document without reading and understanding it in full. Learn as much about the representative and the company before you sign anything. Most important, seek the advice of your personal attorney or a housing counselor.

A company has contacted me and said that they can help me avoid foreclosure if I pay them. Should I pay them?
No. It is illegal in North Carolina for any company to charge you upfront fees for foreclosure prevention services. Scams can be reported to the Attorney General by calling 1-877-5-NO-SCAM. Additional tips are available from the N.C. Attorney General’s Office.

If I don’t have an attorney, who can help me understand my legal rights?
In the event you receive foreclosure papers, you may wish to contact an attorney. Free legal services may be available to you. The following organizations may be able to help:

You may also consider consulting with a bankruptcy attorney. The National Association of Consumer Bankruptcy Lawyers may be able to refer you to a bankruptcy attorney in your area.

 

I requested a modification under the HAMP guidelines. I need help with my forms and have questions about the documentation. Who can help?
The Home Affordable Modification Program is offered through the federal government and has a special customer support team to assist you with applying for the program and meeting requests for documentation. For more information, call 888-995-HOPE (4673) and ask for MHA Help.

I received a foreclosure help letter from the N.C. Housing Finance Agency. What does this letter mean?
If you received a foreclosure help letter from the N.C. Housing Finance Agency, it means your loan may be nearing foreclosure. It also means you are eligible for assistance from the State Home Foreclosure Prevention Project. If you have received the letter, call 1-888-442-8188 to set up an appointment with a HUD-approved housing counseling agency that can go over your options with you, provide access to legal services if your income is low, and assist you in working with your servicer.

What can a housing counselor do to help me?
A housing counselor will schedule an intake session with you to discuss your hardship, current financial situation, and foreclosure prevention options. The counselor can also assist you in contacting your mortgage company. You should meet any requests for documents from your counselor promptly and accurately. Missing documents or erroneous information will delay the counselor’s ability to help your family. If additional appointments are recommended by your counselor, make and keep them.

N.C. Foreclosure Prevention Fund


How can the N.C. Foreclosure Prevention Fund help me?

Do I have to be delinquent on my mortgage in order to participate?

If I am eligible, does that mean I will automatically get help?

What funds are available to help me?

How can I get foreclosure help through the N.C. Foreclosure Prevention Fund?

How do I know which program is best for me?

How can I determine if I am eligible for a program?

Can I qualify for more than one program?

Explain what "temporary financial hardship" means.

Can I get help if I am self-employed and have little or no income coming in?

I am now re-employed after a job loss but am making less than I did before. Can the N.C. Foreclosure Prevention Fund provide help for me?

If I have a loan modification, could I still be eligible for the N.C. Foreclosure Prevention Fund?

If I qualify, how quickly can I receive my new loan to help pay my mortgage?

If I qualify for the Mortgage Payment Program and receive a loan to help prevent foreclosure on my home, how are the funds paid?

What are the loan terms for the Mortgage Payment Program?

What is the maximum amount I can owe on my loan and still be eligible for help through the N.C. Foreclosure Prevention Fund?

What types of homes are eligible?

What if I sell or refinance my home before 10 years is up?

How do I schedule an appointment with a housing counselor?

What documents and information do I need to bring to the meeting with my counselor?

If I am not eligible for the N.C. Foreclosure Prevention Fund, what other housing help might be available?

How can the N.C. Foreclosure Prevention Fund help me?
If you qualify, the Fund can pay your mortgage in the short term (during a job search) or long term (during job retraining); reinstate your mortgage by bringing your payments current; or refinance an unaffordable second mortgage.

Do I have to be delinquent on my mortgage in order to participate?
No. It is best to apply as soon as you know you have a problem. You can be behind or at risk of getting behind on your mortgage payments, or your property can already be in foreclosure.

If I am eligible for one of the programs, does that mean I will automatically get help?
No, you must apply and qualify for any of the loans available through the N.C. Foreclosure Prevention Fund.

What funds are available to help me?

Assistance is provided on a first-come, first-served basis as long as funds are available.


How can I get foreclosure help through the N.C. Foreclosure Prevention Fund?
Determine whether you may be eligible using this easy tool. You can also call 1-888-623-8631 or contact a participating HUD-approved housing counseling agency in your area.

How do I know which program is best for me?
Read the program descriptions outlined in this website: Mortgage Payment Program and Second Mortgage Refinance Program. Call 1-888-623-8631 for more information, or contact a participating HUD-approved housing counseling agency in your area to schedule an appointment.

How can I determine if I am eligible for one of the programs?
Take this quick eligibility questionnaire to find out. In addition to the eligibility requirements noted on our website, the Agency will also consider other factors, such as need, in approving applications for this program.

Can I qualify for more than one program?
Not at the same time. Most homeowners will not qualify for more than one form of assistance. However, homeowners who have participated in the Mortgage Payment Program and are now re-employed may be eligible for the Second Mortgage Refinance Program if they still have a demonstrated financial need.

Explain what "temporary financial hardship" means.
Temporary financial hardships include illness, divorce, separation, or death of a co-borrower, and applies to homeowners who are seeking new employment in order to resume future mortgage payments on their own.

Can I get help if I am self-employed and have little or no income coming in?
Yes. Talk to your housing counselor for specific information.

 

I am now re-employed after a job loss but am making less than I did before. Can the N.C. Foreclosure Prevention Fund provide help for me?
The Fund offers a Second Mortgage Refinance Program that helps currently employed North Carolina homeowners with second mortgages who, through no fault of their own, are financially unable to make their mortgage payment because of a prior job loss, reduced income, or other program-eligible temporary financial hardship.

If I have a loan modification, could I still be eligible for the N.C. Foreclosure Prevention Fund?
If you have a permanent loan modification, you still may be eligible to receive assistance from the N.C. Foreclosure Prevention Fund. The permanently modified mortgage payment will be used to determine your  loan amount from the Fund. Applicants in a forbearance agreement may also be eligible to receive assistance from the N.C. Foreclosure Prevention Fund. However, the assistance will be based on the mortgage payment established in the original note, not on the forbearance agreement. If you are applying for or have already received a trial loan modification, you may apply for assistance from the Fund; however, you cannot receive a trial loan modification and assistance from the N.C. Foreclosure Prevention Fund at the same time.

If I qualify, how quickly can I receive my new loan to help pay my mortgage?
The amount of time varies. Being prepared with your documentation is the best way to keep the process moving as quickly as possible. See How the Process Works for more about what to expect.

If I qualify for the Mortgage Payment Program and receive a loan to help prevent foreclosure on my home, how are the funds paid?
The N.C. Housing Finance Agency will pay mortgage related expenses directly to the mortgage servicer that collects your monthly payment. If you do not pay escrow to your servicer, the Agency will pay your related expenses directly to your insurance company, taxing authority, or homeowner's association.

What are the loan terms for the Mortgage Payment Program?
Loans are made at zero interest and will be forgiven at 20 percent per year for every year the homeowner stays in the home after five years. After 10 years, the owner pays nothing. The loans must be paid back if the home is sold or refinanced, or the homeowner moves out. 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. If you sell or refinance the home and it has not increased in equity enough to repay the loan, all or a portion of the loan will be forgiven.

What is the maximum amount I can owe on my loan and still be eligible for help through the N.C. Foreclosure Prevention Fund?
Total unpaid principal (the amount you owe excluding interest) on your existing primary and second mortgages cannot exceed $300,000.

What types of homes are eligible?
Single-family homes, townhomes, or condominiums (attached or detached), including manufactured homes on foundations permanently affixed to land owned by the homeowner.

What if I sell or refinance my home before 10 years is up?
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.

How do I schedule an appointment with a housing counselor?
Contact a participating HUD-approved housing counseling agency in your area.

What documents and information do I need to bring to the meeting with my counselor?
What you need to bring depends on your specific situation and on which program you are applying for. When you schedule an appointment with your counselor, he or she will tell you what to bring.

If I am not eligible for the N.C. Foreclosure Prevention Fund, what other housing help might be available?

If you are not eligible for assistance from the N.C. Foreclosure Prevention Fund, there are other foreclosure prevention programs that may be able to help you. To learn more, review the information in the Other Resources section or contact a participating HUD-approved housing counseling agency near you.

State Home Foreclosure Prevention Project

What is the State Home Foreclosure Prevention Project?

How can I get help from the project?

What is the State Home Foreclosure Prevention Project?
The State Home Foreclosure Prevention Project is a partnership of state and federal agencies, HUD-approved housing counseling agencies, legal assistance organizations, mortgage servicers and community organizations that use targeted outreach and state-led case management to provide homeowners with the assistance they need to avoid foreclosure. The free program is available to any N.C. homeowner who has received a 45-day pre-foreclosure notice and a foreclosure help letter from the N.C Housing Finance Agency.

How can I get help from the project?
If you have received a foreclosure help letter from the N.C. Housing Finance Agency, please call 1-888-442-8188 to be connected to a HUD-approved housing counseling organization that can review your situation with you, provide access to legal assistance if your income is low, and help you work with your servicer.  Services are available over the phone or in face-to-face settings.