This program has been operating since 2004. The North Carolina Home Protection Program and Loan Fund was created with the primary goal of assisting workers who have lost their jobs due to economic conditions that are beyond their control. The state program will provide financial assistance so that these homeowners can continue to make their mortgage payments, which will prevent them from going into foreclosure.
If a homeowner applies and it is decided they are eligible, they may apply for a zero-interest loan that is equal to the lesser of $24,000 or the minimum amount that is required to bring the mortgage-related obligations current. Also, the amount of the loan can’t be greater than the total value of 24 months of their monthly mortgage payments.
The terms and conditions vary. The loan may not need to be repaid for up to 15 years, so the borrower has time to regain stability. The program also offers financial counseling. If you receive mortgage assistance from the North Carolina Home Protection Program and Loan Fund the homeowner may have their repayment deferred for up to 15 years unless the home is refinanced, sold, or if it becomes no longer owner-occupied, in which case the loan must be paid at the time that action occurs.
The program also provides extensive foreclosure assistance in that those who qualify for the program will also receive a 120-day stay of foreclosure. That delay will commence when the North Carolina Housing Finance Agency receives a completed application for assistance, so it starts early in the process. Since the homeowner won’t be foreclosed on in short order it will delay any possible onset of homelessness.
Homeowners need to apply for this financial aid through participating agencies, including credit counselors, local community action groups, and government agencies. They will go over the process and will determine in advance whether homeowners are eligible for the program.
There are some conditions. To be eligible for the zero interest loan, borrowers need to have lost their job due to changing economic conditions beyond their control. In addition to that, they must demonstrate an ability to resume paying their mortgage after the assistance ends, so they need to be otherwise self-sufficient. In addition the applicant needs to have a mortgage that is secured by real property, and also have had a fairly stable credit history and employment prior to losing their job.
You can receive help from the program in three different ways including short-term relief (up to 9 months) while you look for a new job, a one-time assistance or cash grant to bring your mortgage current and pay off any arrearage, and also long term assistance (for up to 24 months) while you participate in a state approved job retraining program.
Counseling is also provided as part of the Home Protection Program and Loan Fund. For example, a participating mortgage counselor or local housing agency will review your situation. Based on this assessment, they will help you assess what you need to do to get back on your feet. They will offer ways to improve your situation, and this counseling is offered even if you don’t qualify for the zero interest loan. To apply or learn more dial 800-393-0988.
The team at that number provide other support too. Callers can learn about other resources to get mortgage and foreclosure assistance in North Carolina that are in addition to this program when you call the number above.
Another huge benefit of the program is that when your completed application is received, the North Carolina Housing Finance Agency will immediately take action to prevent or slow down the foreclosure process. They will place a temporary stay of foreclosure for up to 120 days, thereby giving you time. That means the bank will need to allow the family to continue to live on the property.
The temporary stay will stop the bank or lender that owns your mortgage from foreclosing on your property, and it will even stop them from taking any other type of legal actions. All this is enforced by the state while your loan application for mortgage help from the North Carolina Home Protection Program and Loan Fund is under review.
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