This program is no longer available in the same way it was before. The North Carolina Home Protection Program and Loan Fund was created to help workers who lost their jobs due to economic conditions. However, it has been replaced by other options for homeowners in NC. The state program will provide financial assistance to homeowners so they can continue to make their mortgage payments and avoid foreclosure.
If a homeowner meets the eligibility requirements, they can apply for a loan with no interest that is equal to either $24,000 or the amount of money needed to bring their mortgage up to date, whichever is less. The loan amount cannot exceed 24 months’ worth of mortgage payments.
The terms and conditions depend on the situation. The loan does not need to be repaid for up to 15 years, so the borrower has time to regain stability. This program also provides financial counseling. If you receive mortgage assistance from the North Carolina Home Protection Program and Loan Fund, you may not have to repay the loan for up to 15 years. However, if you refinanced, sold, or no longer live in the home, you will have to repay the loan.
The program provides assistance to those who are facing foreclosure by giving them a 120-day stay. The delay in assistance will begin when the North Carolina Housing Finance Agency receives a completed application. The homeowner won’t be forced to leave their home immediately, which will prevent them from becoming homeless.
If you’re a homeowner in need of financial aid, you can apply through participating agencies like credit counselors, local community action groups, and government agencies. They will go over the process and determine whether homeowners are eligible for the program in advance.
How am I eligible for the North Carolina Home Protection Program and Loan Fund?
There are some requirements that must be met. In order to be eligible for the loan with no interest, borrowers must have lost their job due to economic conditions that were out of their control. In order to qualify for assistance, mortgagees must show that they are able to make payments on their own once the assistance ends. This means that they must be otherwise self-sufficient. The applicant must also have a mortgage that is backed by real property and have had a good credit history and employment before losing their job.
How is assistance provided?
The program can help you in three different ways: short-term relief 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 while you participate in a state approved job retraining program.
If you are a part of the Home Protection Program or the Loan Fund, you are also eligible for counseling. A counselor or housing agency will review your situation to see if you qualify for the mortgage. Based on this assessment, they will help you determine 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 learn more about the different mortgage programs offered in North Carolina, please call 800-393-0988 or 919-877-5700.
The team at that number also provides other support. When you call the number above, you can learn about other resources for mortgage and foreclosure assistance in North Carolina that are in addition to this program.
Stop a foreclosure.
The program also provides assistance to those who have already been foreclosed upon. This means that they will temporarily stop the foreclosure process for up to 120 days, giving you time to catch up on your payments or sell your home. That means the bank will need to allow the family to continue to live in the property.
The temporary stay will prevent the bank or lender that owns your mortgage from foreclosing on your property, and it will even prevent them from taking any other type of legal actions. The state will review your application for a loan from the North Carolina Home Protection Program and Loan Fund to help with your mortgage.