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North Carolina initiates a foreclosure prevention fund



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By : Scott Zahid    99 or more times read
Unemployment situation across the country is worsening the foreclosure crisis. North Carolina is among the hardest hit by unemployment. The 100 counties in North Carolina account for over 11.3 percent unemployment rate. To deal with this situation and help homeowners prevent their houses from seizing, the North Carolina Housing Finance Agency developed a prevention fund plan after receiving money from the US Treasury Department. The fund is being provided under the state’s Foreclosure Prevention Fund.

In August 2010, North Carolina received $159 million through federal funds. Out of which $115 million will be utilized by the state Housing Finance Agency to execute the prevention fund, and the rest of the money, $44 million, will be used to implement other hardest hit program in the coming year 2011. The hardest hit programs include refinancing second loans and reducing the principal amount of delinquent loans. North Carolina was chosen for this fund as the number of people unemployed in the state is huge. Through this fund, 21,000 people would be eligible to apply and get assistance from this program.

According to the plan, counties that have an unemployment rate of over 11.3 percent will receive up to $36,000 for 36 months towards preventing foreclosures, and other counties that registered an unemployment rate of less than 11.3 percent will receive $24,000 for 24 months as prevention aid. This aid will be used to pay for their mortgages spread over 2 years until the borrower gets a job. This scheme has zero percent interest, no processing fees, and the repayment of loan can be done within tenure of five to ten years. It will only be considered people who have lost their job after Jan 2008.

The foreclosure prevention fund can be availed by people who lost their jobs without any mistake of theirs, are underemployed and earning less than the amount required to pay their mortgages or facing unprecedented events like death of a co-signer, serious aliment or divorce. To help distressed homeowners with the application process and answer their queries, a non-profit call center, Alliance Credit Counseling in Charlotte, has been setup.

Apart from this, the Consumer Counseling Service in Greater Greensboro will be assisting people in six different counties like Caswell, Guilford, Randolph, Rockingham, Alamance and Davidson. Although not every house can be stopped from going under foreclosure, this program definitely aims at reducing the overwhelming numbers, which are plaguing the housing market at present.


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