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.

How the Process Works


From the time you first make contact to seek help, the process of applying for and receiving a loan through the N.C. Foreclosure Prevention Fund can take up to one month, and in certain cases, even longer. The amount of time required to determine your eligibility, approve your application, and pay funds to your mortgage servicer may depend on a number of factors. Refer to the following steps for an idea of how the process works.

First Steps
  1. You may use the eligibility tool to begin the prequalification process online, or you may call 1-888-623-8631 to contact a participating HUD-approved housing counseling agency to set up an appointment.

If You Are Eligible
  1. If your answers to the eligibility tool indicate that you are eligible to apply for the program, you can choose to complete the application one of two ways:
    1. You can complete the application online, or
    2. You can choose to make an appointment with a counselor to complete your application together. Please be sure to ask what documents will be needed at your appointment. You can find a housing counselor on our website, www.NCForeclosurePrevention.gov, and click “Find a Counselor.”
  2. If you choose to complete the application online, the application process will take 3 - 4 hours to complete:
    • 1½ – 2 hours to complete application questions
    • 1½ – 2 hours to upload documents in electronic format
  3. The application requires several documents to be provided, such as the original note when you purchased the home and bank statements. If you choose to complete the application online, you will need to upload the documents in a pdf format. If you do not have a scanner or you do not feel comfortable uploading your documents, you may prefer to set up an appointment with a housing counselor to complete your application instead of completing the application online. You can find a housing counselor on our website, www.NCForeclosurePrevention.gov, and click “Find a Counselor.”
  4. Once the application is complete and all the required documents have been provided and uploaded, the application and supporting documentation is submitted to the N.C. Housing Finance Agency.
  5. The N.C. Housing Finance Agency reviews your application and responds within 45 days of receiving it. If you are 90 days or more delinquent, the Agency may place a stay-of-foreclosure on your property while it reviews your application.

If Your Loan Is Approved
  1. A title search is performed, and current mortgage reinstatement information about your mortgage is collected. If your title is unacceptable, we will work with you to try to resolve the issue so the loan process can continue.
  2. A closing date on your new loan is set up within five days of receipt of the closing package. After the loan closes, your Deed of Trust is submitted to the Register of Deeds and closing documents are submitted to the N.C. Housing Finance Agency.
Final Steps
  1. The N.C. Housing Finance Agency reviews your closing documents and makes your monthly payments for you directly to your loan servicer and other mortgage-related parties if applicable, such as your taxing authority, homeowner's insurance company, and homeowner's association.
  2. We will stay in touch with you periodically throughout the loan period and make sure you continue to meet eligibility requirements, such as searching or retraining for a job and continuing to live in your home.
  3. While the N.C. Housing Finance Agency is making your mortgage payments on your behalf, it is critical that you keep the Agency informed of any mortgage payment changes and any correspondence you receive from your mortgage servicer, taxing authority, insurer, etc. Mail the correspondence to:

    N.C. Housing Finance Agency
    P.O. Box 28066
    Raleigh, NC 27611-8066
    Attn.: N.C. Foreclosure Prevention Fund

Your housing counselor can point you toward other helpful resources and discuss ways to improve your financial situation if you are in one of the following situations:
  • You are not eligible for help through the N.C. Foreclosure Prevention Fund
  • Your loan application is not approved by the N.C. Housing Finance Agency
  • The title issue cannot be resolved.
You can find a housing counselor on our website, www.NCForeclosurePrevention.gov, and click “Find a Counselor.”