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.

Pay Off Your Second Mortgage

Due to recent economic challenges, you may find you can no longer afford the payment on your second mortgage.

The N.C. Foreclosure Prevention 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 you are at risk of foreclosure, the Second Mortgage Refinance Program may be able to help if you have experienced one of the following scenarios:

  • You are earning less than you have in the past, or
  • You faced a temporary financial hardship (for example, you lost income due to divorce, separation, serious illness, or death of a co-signer)
  • You've lost your job but are eligible for fixed income payments, (i.e., retirement, Social Security, disability, or VA benefits) that will enable you to continue paying your first mortgage

You must have a good mortgage payment history prior to your recent income loss or financial hardship.


If you qualify, the Second Mortgage Refinance Program may help you reduce your monthly payments by refinancing your second mortgage. The program offers a zero-interest, deferred payment loan of up to $50,000 plus all related fees to pay off your existing second mortgage.

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. A housing counselor can tell you more.


Or, you can go to Am I Eligible, complete a short questionnaire, and apply online if you are determined to be eligible.

Find Out If You Are Eligible

How the Process Works

Find a participating HUD-approved housing counseling agency near you.