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.

State Home Foreclosure Prevention Project


The State Home Foreclosure Prevention Project was created by the General Assembly in 2008 to reduce foreclosures in North Carolina. It is administered by the North Carolina Housing Finance Agency, a self-supporting public agency. Eligibility for this program is triggered when homeowners receive a letter from their mortgage servicer notifying them that the servicer plans to foreclose in 45 days. Homeowners also receive a foreclosure help letter from the N.C. Housing Finance Agency, urging homeowners to call a toll-free number to receive free counseling, access to legal services if their income is low and assistance working with servicers.

 

Partners in the State Home Foreclosure Prevention Project include the N.C. Housing Finance Agency, the N.C. Commissioner of Banks, the N.C. Administrative Office of the Courts, the N.C. Office of the Attorney General, and HUD-approved housing counseling agencies across the state. In addition, the following organizations participate in the program by offering free legal services to homeowners with lower incomes:

The N.C. Housing Finance Agency also works with servicers, which are required to provide a 45-day pre-foreclosure notice to homeowners as a result of the Emergency Program to Reduce Foreclosures. In addition, servicers are also required to set up an account and file pre-foreclosure notices in a state database. The N.C. Housing Finance Agency uses the database to provide information to homeowners facing foreclosure about the State Home Foreclosure Prevention Project and other state resources.