Free NC Foreclosure Prevention
Homeowners who received foreclosure prevention counseling are nearly TWICE as likely to obtain a mortgage modification.
A series of studies submitted to the US Congress have shown that homeowners who received foreclosure prevention counseling through HUD-approved housing counseling agencies were nearly twice as likely to get a mortgage loan modification.
Homeowners who received HUD-approved foreclosure prevention counseling averaged saving $176 MORE PER MONTH with their modification than those who did not.
The same studies showed significant monthly savings over the modifications obtained without the certified, experienced professionals at HUD-approved agencies like Alliance.
Homeowners who receive Alliance’s foreclosure prevention counseling are never charged a fee.
All of our NC foreclosure prevention services are free. Alliance is an US Department of Housing and Urban Development (HUD) approved nonprofit agency, and our funding for foreclosure prevention services comes from Federal and State sources.
Homeowners have options. Get to know them.
Alliance provides every homeowner with a comprehensive, personalized review of their situation and helps you understand the advantages and disadvantages of each of your options. Some of those options might include:
NC Foreclosure Prevention Fund
In NC, the first program we review for eligibility is the NC Foreclosure Prevention Fund. This program offers foreclosure prevention loans to the unemployed, under-employed, and formerly unemployed. If you are unemployed or have lost more than 50% of your income due to changing economic conditions, you may be eligible for the NC Foreclosure Prevention Fund. This program is administered by the N.C. Housing Finance Agency and funded by the U.S. Treasury’s Hardest Hit Fund. The foreclosure prevention fund provides mortgage payment assistance while you are looking for work or going to school to learn new job skills. Our counselors will assist you to determine if you qualify. Get more details.
Loan modifications change the terms of your mortgage to make the payments more affordable. The best known of these is the federal government’s Making Home Affordable program called HAMP or Home Affordable Modification Program. There are other federal government programs, as well as many lender programs as well.
Home Affordable Modification Program (HAMP)
The federal government program known as the Home Affordable Modification Program is one of several government loan modification programs. Contact one of our counselors for expert advice and assistance.
Private Modification Programs
Many lenders have private loan modification programs that are not associated with government programs, and sometimes they are a better alternative. In fact, most modifications are of the private type.
North Carolina foreclosure prevention options
The NC Foreclosure Prevention programs help homeowners prevent foreclosure. Many of them are listed here, but new programs, including federal, state and private programs are being introduced frequently. It’s best contact one of our certified counselors to see what your options are, by using the form at the right or calling us today! The options fall under two general categories, retaining ownership and relinquishing ownership.
NC Foreclosure Prevention Retain Ownership Options
NC Foreclosure Prevention Fund:
Get up to 36 months of your mortgage payments made while you are looking for work or going to school to learn new job skills.
Requirements: Must have a qualifying hardship, usually involving unemployment, under-employment, or recently re-employed.
The lender may reduce the interest rate, monthly payment, extend the term of the loan, or even reduce the principal balance, individually or in any combination.
Requirements: Must have a positive budget, steady employment, and a good reason must exist for modification.
Obtain a new mortgage through conventional or special programs that are available.
Requirements: Terms vary widely, but credit performance must be good, with possible exception of late mortgage payments due to rate increases.
Obtain a reverse mortgage to replace the existing one.
Requirements: Must be 62 years old or older, substantial equity in home, usually 50% or more of value. No credit check.
See more reverse mortgage information.
Foreclosure Prevention Funds:
A charitable or government agency may be able to provide you with an interest free, deferred loan to catch up your payments, such as the N. C. Foreclosure Prevention Fund.
Requirements: Meet hardship requirements, demonstrate ability to resume mortgage payment after assistance ends, and agree to on-going credit counseling.
You may be able to obtain a loan from HUD (FHA loans only) to bring your loan current. You must be a minimum of 4 months behind.
Requirements: Must have an FHA Loan, Must have FHA mortgage insurance, must be able to afford current mortgage + FHA loan terms, must have a positive budget.
Spreading the defaulted payments out over a series of months, usually not more than six (6).
Requirements: Must have at least one payment, must have proof of income, must have a positive budget, must have the ability to pay current mortgage payment plus a portion of defaulted payment.
Reduce or suspend monthly payments for a period then resume regular payments plus the of deferred amount on a schedule.
Requirements: Must be able to prove hardship circumstances, have a reasonable positive budget.
NC Foreclosure Prevention Relinquish Ownership Options
Allows homeowner to remain in their home, gives homeowner up to 2 years to improve their Financial situation, retain majority of their equity.
Requirements: Must have at least $20,000 in equity, property must be in good condition, must have a credit score of 500 or better, must have proof of steady income, must be willing to attend credit counseling and work closely with a credit counselor during the rental period to improve your credit payment performance.
Sell your property at a price equal to or above the amount owed and retain any resulting equity in your home prior to foreclosure.
Requirements: Must be in the early stages of foreclosure.
A Short Sale is the sale of the property for less than (or short) the amount necessary to pay off the loan in full.
Requirements: Must be able to document reason for short sale, declining property values in the neighborhood, cannot aford property, need to relocate and must sell the home, must be able to vacate home immediately upon sale or prior to closing, understand that the lender may seek a deciency judgement.
Voluntarily “Give Back” your home to the lender. This will not save your home but it will allow you to obtain another home in the future.
Requirements: Must be willing to move quickly & to forfeit any equity.
Cash for Keys:
Sometimes in cases of extreme hardship Lenders are willing to provide a small amount of cash in exchange for possession.
Legal proceeding by Lender to obtain title and possession of real property, typically as a last resort because it is very costly for the Lender.
Requirements: Do nothing, but you will suffer the long term effects on your credit file and the resulting higher cost of credit in the future.