Qualified homeowners can avail a zero-interest loan of up to $36,000 for up to three years that can be used to clear their mortgage and other related expenses. One of the wisest methods available for homeowners, this is an opportunity that every lender should offer homeowners who are struggling to make their payments. Lenders should consider foreclosure only as a last resort, as it benefits no one and harms both parties. On the other hand, using the NC Foreclosure Prevention Fund as a measure to prevent foreclosure helps both the homeowner and the lender. This program is one of the best alternatives to foreclosure today.

Financed through the U.S. Department of Treasury’s Hardest Hit Fund, the NC Foreclosure Prevention Fund is a boon to home owners facing foreclosure of their properties to tide them over until their financial crisis blows over. The NC Housing Finance Agency offers this type of foreclosure help by partnering with all participating HUD approved housing counseling agencies. Property owners can know more about this type of foreclosure help or assistance by logging on to www.NCForeclosurePrevention.gov.

Home Protection Program and Loan Fund

The North Carolina Foreclosure Prevention Fund is based to a large extent on the successful, smaller Home Protection Program. The North Carolina Home Protection Program and Loan Fund is another type of NC foreclosure help, or assistance program, that enables workers who have lost their jobs (resulting from bad economic conditions) to avoid foreclosure of their homes. This program was designed by the General Assembly in 2004 and is operated by the North Carolina Housing Finance Agency. To qualify for a loan under this program, you must meet all of the following criteria:

  • Should have had a stable job and a good credit history prior to your losing your employment.
  • Should have lost your job owing to precarious economic conditions
  • Should possess a mortgage that is secured by real property
  • Should be able to repay your mortgage amount following the end of assistance

Assistance from this program is available on a first-come, first-serve basis. Homeowners can contact the Home Protection Program Counseling Agency in their area to seek assistance. The power to approve or deny loans is wholly vested with North Carolina Housing Finance Agency.

The temporary 120-day stay of foreclosure is the characteristic feature of the aforesaid program. The stay of foreclosure will be imposed once the property owner’s filled-in application is received by the Agency as under the North Carolina statute. While the stay can safeguard the homeowner from foreclosure, it cannot safeguard against late payments being mentioned on his credit report, collection, or payment of any mortgage-related obligations.

State Home Foreclosure Prevention Project

Created by recent legislation on August 17, 2008, the State Home Foreclosure Prevention Project (SHFPP) is now led by the Commissioner of Banks in partnership with other agencies. The Project works to bring down the number of subprime foreclosures in North Carolina. Project partners include legal assistance organizations, housing counselors, community organizations and mortgage services.

Conclusion

Out of many offers of assistance for foreclosure, the North Carolina Foreclosure Prevention Fund is the most effective, helping you to stall foreclosure proceedings on your property almost instantly. Through the NC Foreclosure Prevention Fund, you will be able to make affordable mortgage payments and avoid foreclosure.