Help for the Hardest Hit Homeowners

Transcription

1 A temporary setback doesn t have to mean a permanent loss Help for the Hardest Hit Homeowners For more information:

2 . The N.C. Foreclosure Prevention Fund offers help to North Carolina homeowners who are struggling to make their mortgage payments due to job loss or other temporary financial hardship, such as the death of a loved one, divorce, or serious illness. The N.C. Foreclosure Prevention Fund is offered by the N.C. Housing Finance Agency, a self-supporting state agency, and funded through the U.S. Department of the Treasury's Hardest Hit Fund. Services are provided by participating HUD-approved counseling agencies statewide. Homeowners may be eligible for help through one of the following programs designed to help them prevent foreclosure. The Mortgage Payment Program provides zero-interest loans of up to $24,000 for a maximum of 24 months. Homeowners in the state's "hardest hit" counties may qualify for up to $36,000 over 36 months. The Second Mortgage Refinance Program provides zero interest loans up to $30,000 maximum to employed homeowners who cannot afford payments on their second mortgage. Eligible homeowners can apply directly at for these programs or through our participating housing counseling agencies located across the state. Even if the homeowner doesn t qualify for help through the N.C. Foreclosure Prevention Fund, a counselor may be able to direct the homeowner to other sources of help. Mortgage Payment Program (MPP) MPP provides a 0% interest, non-recourse, deferred payment, subordinate loan that will be forgiven after 10 years. The loans will assist homeowners who are unemployed, re-employed or are dealing with a program eligible financial hardship on or after January 1, Loan funds can be used to bring past-due mortgage(s) current and/or pay monthly mortgage(s) and mortgage-related expenses 2

3 (i.e., property taxes, fire insurance, mortgage insurance, and homeowner s association dues) while the homeowner seeks or trains for a new job. Homeowners in the Hardest Hit counties will be eligible to receive up to $36,000 (not to exceed 36 months of assistance). Homeowners in non- Hardest Hit counties will be eligible to receive up to $24,000 (not to exceed 24 months of assistance). This program is offered statewide. Second Mortgage Refinance Program (SMRP) SMRP provides a 0% interest, non-recourse, deferred payment, balloon, subordinate loan. Loan funds are due and payable if property is sold, refinanced or no longer owner occupied. Loans are repayable at the time of a sale or non rate/term refinance or will balloon at the end of maturity of the first lien. The loans will provide assistance to recovered, employed homeowners who have an unaffordable second mortgage due to a prior unemployment, under-employment, or other program eligible financial hardship on or after January 1, The program will extinguish an existing second mortgage up to $30,000 to achieve a monthly payment not exceeding 31% of the homeowner s current gross monthly income. This program is offered statewide. 3

4 Hardest Hit Counties are defined as counties experiencing a rate of unemployment of 11.3% or higher in Most of the new programs give special consideration to these counties. The Agency will perform an annual review to assess possible changes to hardest hit counties based on unemployment rates. Hardest Hit Counties With Unemployment Rates Of 11.3% Or Greater For 2009 Hardest Hit Counties Counties with unemployment <11.3% 50 Hardest Hit Counties Alamance Chowan Lenoir Rutherford Alexander Clay Lincoln Scotland Alleghany Cleveland McDowell Stanly Anson Columbus Mitchell Surry Ashe Davidson Montgomery Swain Beaufort Davie Nash Vance Bladen Edgecombe Northampton Warren Burke Gaston Person Washington Cabarrus Graham Randolph Wilkes Caldwell Halifax Richmond Wilson Caswell Harnett Robeson Yancey Catawba Iredell Rockingham Cherokee Lee Rowan 4

5 . From the time a homeowner first makes contact to seek help, the process of applying for and receiving a loan through the N.C. Foreclosure Prevention Fund can take up to two months, and in certain cases, even longer. The amount of time required determining eligibility, approving the application, and paying funds to their mortgage servicer may depend on a number of factors. First Steps 1. The homeowner can call , the NC Foreclosure Prevention Call Center to contact a participating HUD-approved housing counseling agency. 2. They are referred to a housing counselor to call to make an appointment or they may apply directly with us online at without the assistance of a housing counselor. If Homeowner is Eligible 3. The homeowner will need to take time to put together the required financial and legal documents before his/her appointment or applying online. The counselor provides instructions on what documents should be provided. 4. The homeowner can apply online or can meet with the counselor to complete the application. 5. After the appointment, the counselor submits the application and supporting documentation to the North Carolina Housing Finance Agency. 6. The N.C. Housing Finance Agency reviews the application and responds within 45 to 60 days of receiving it. If the homeowner is 90 days or more delinquent upon acceptance of the application by North Carolina Housing Finance Agency, the Agency may place a 120-day stay-of-foreclosure on the property. If Assistance Is Approved 7. A title search is performed and current mortgage reinstatement information about the homeowner s mortgage is collected. If the title is found acceptable, the N.C. Housing Finance Agency prepares and sends a closing package to the counselor or the selected counseling entity. If the title is unacceptable, the counselor will work with the homeowner to try to resolve the issue so the loan process can continue. If applying directly, an Agency staff member will work with the homeowner to try and resolve the issue. 5

6 8. The counselor or closing entity sets up a closing date on the new loan within five days of receipt of the closing package. After the loan closes, the counselor submits the Deed of Trust to the Register of Deeds and submits closing documents to the N.C. Housing Finance Agency. Final Steps 9. The N.C. Housing Finance Agency will review the closing documents and make the monthly payments directly to the loan servicer and other mortgage-related parties if applicable, such as the taxing authority, homeowner's insurance company, and homeowner's association. 10. The counselor or North Carolina Housing Finance Agency will stay in touch with the homeowners periodically throughout the loan period, to ensure they continue to meet eligibility requirements, such as searching or retraining for a job and continuing to reside in their home. 6

7 While eligibility requirements vary for each of the two programs in the N.C. Foreclosure Prevention Fund, knowing the minimum requirements up-front will give some idea if the homeowner should seek assistance. He/she may be eligible if: Homeowner must be a legal US and North Carolina resident and must occupy the home as his/her principal residence. Homeowner cannot currently owe more than $275,000 on all existing mortgages. Homeowner must have lost a job or experienced a reduction in income through no fault of his own, or is facing or has faced a temporary financial hardship such as a divorce, serious illness, or death of a co-signer on or after January 1, 2008 and needs to find new employment. Homeowner must have good mortgage payment history prior to the recent unemployment or income loss within 6 months prior to the hardship date. Homeowner must demonstrate an ability to resume his mortgage payment once assistance ends. 7

8 1. Contact a housing counselor in a partner agency in the area 2. Call (Monday through Thursday, 8:00 a.m. to 9:00 p.m.; Friday, 8:00 a.m. to 8:00 p.m.; and Saturday, 9:00 a.m. to 5:00 p.m.) 3. Apply directly at The N.C. Foreclosure Prevention Fund partners with HUD-approved counseling agencies across the state. These agencies are dedicated to helping struggling homeowners by offering: free foreclosure prevention help information about other housing help programs in case the homeowner don t qualify for a loan through the N.C. Foreclosure Prevention Fund 8

9 EASTERN REGION of the State AMEZ Housing Community Development Corporation Serves: Brunswick, Columbus, New Hanover & Pender counties Main Office: Wilmington (619 Nixon Street) Blue Springs-Hoke County Community Development Corporation Serves: Cumberland, Hoke, Richmond, Robeson & Scotland counties Main Office: Raeford (114 N. Main Street) Cape Fear Regional Community Development Corporation Serves: Bladen, Brunswick, Columbus, New Hanover & Pender counties Main Office: Wilmington (500 Compton Street) Choanoke Area Development Association Serves: Bertie, Halifax, Hertford, Hyde, Northampton, Tyrell & Washington counties Main Office: Rich Square (120 Sessom Drive) Other Offices: Ahoskie, Roanoke Rapids & Windsor Cumberland Community Action Program/CCCS of Fayetteville Serves: Beaufort, Bladen, Brunswick, Carteret, Chatham, Columbus, Craven, Cumberland, Duplin, Greene, Harnett, Hoke, Hyde, Johnston, Jones, Lee, Lenoir, Martin, Montgomery, Moore, New Hanover, Onslow, Pamlico, Pender, Pitt, Richmond, Robeson, Rockingham, Sampson, Scotland, Wayne & Wilson counties. Main Office: Fayetteville (316 Green Street) Other Offices: Fayetteville, Goldsboro, Kinston, New Bern, Smithfield, Southern Pines & Wilmington Greenville Housing Development Corporation *part of the Greenville Housing Authority Serves: Beaufort, Edgecombe, Greene, Lenoir, Nash, Pitt & Washington counties Main Office: Greenville (1103 Broad Street) Kingdom Community Development Corporation Serves: Bladen, Cumberland, Harnett, Hoke, Lee Robeson & Sampson counties Main Office: Fayetteville (308 Green Street) 9

10 Northeastern Community Development Corporation Serves: Camden, Chowan, Currituck, Dare, Gates, Pasquotank & Perquimans counties Main Office: Camden (154 Highway 158 East) Outer Banks Community Development Corporation Serves: Currituck, Dare, Hyde & Tyrell counties Main Office: Kill Devils Hills (115 S. Mustian Street) River City Community Development Corporation Serves: Camden, Chowan, Currituck, Dare, Gates, Pasquotank, Perquimans & Tyrell counties Main Office: Elizabeth City (501 E. Main Street) Robeson County Community Development Corporation Serves: Bladen, Columbus, Hoke, Robeson & Scotland counties Main Office: Rowland (114 E. Main Street) Rocky Mount-Edgecombe Community Development Corporation Serves: Edgecombe and Nash counties Main Office: Rocky Mount (148 S. Washington Street, Suite 108) Twin Rivers Opportunities, Inc Serves: Carteret, Craven, Jones & Pamlico counties Main Office: New Bern (518 Craven Street) Wilson Community Improvement Association Serves: Greene, Pitt, Wayne & Wilson counties Main Office: Wilson (504 E. Green Street) 10

11 CENTRAL REGION of the State Alliance Credit Counseling Serves: Alexander, Anson, Cabarrus, Catawba, Cleveland, Gaston, Iredell, Lincoln, Mecklenburg, Rowan, Stanly & Union counties Main Office: Charlotte (13777 Ballantyne Corporate Place, Suite 100) Charlotte Mecklenburg Housing Partnership, Inc Serves: Cabarrus, Gaston, Iredell, Lincoln, Mecklenburg & Union counties Main Office: Charlotte (4601 Charlotte Park Drive, Suite 350) Consumer Credit Counseling Services of Forsyth County Serves: Alleghany, Ashe, Davie, Forsyth, Iredell, Stokes, Surry & Yadkin counties Main Office: Winston-Salem (8064 North Point Boulevard, Suite 204) Other Offices: Kernersville, Mocksville, Statesville & Yadkinville Consumer Credit Counseling Services of Gaston Serves: Cleveland, Gaston & Lincoln counties Main Office: Gastonia (214 E. Franklin Boulevard) Other Office: Lincolnton Consumer Credit Counseling Services of Greater Greensboro Serves: Alamance, Caswell, Davidson, Guilford, Randolph, Rockingham & Rowan counties Main Office: Greensboro (315 E. Washington Street) Other Offices: Asheboro, Burlington, High Point, Lexington, Salisbury, Wentworth & Yanceyville Consumer Education Services, Inc Serves: Alamance, Durham, Franklin, Granville, Halifax, Harnett, Johnston, Lee, Lenoir, Nash, Orange, Pitt, Vance, Wake, Wayne & Wilson counties Main Office: Raleigh (3700 Barrett Drive) Davidson County Community Action, Inc Serves: Davidson, Davie, Forsyth & Randolph counties Main Office: Lexington (15 E. Second Avenue) Durham Affordable Housing Coalition Serves: Alamance, Chatham, Durham, Franklin, Granville, Johnston, Orange, Person, Vance, Wake & Warren counties Main Office: Durham (400 W. Main Street, # 408) Durham Regional Financial Center Serves: Alamance, Durham, Franklin, Granville, Orange, Person & Wake counties Main Office: Durham (315 E. Chapel Hill Street) Other Offices: Hillsborough & Oxford Franklin-Vance-Warren Opportunities, Inc Serves: Franklin, Granville, Person, Vance & Warren counties 11

12 Main Office: Henderson (116 Young Street) Greensboro Housing Coalition Serves: Guilford County Main Office: Greensboro (122 N. Elm Street, Suite M-2) Guilford County Homeownership Center Serves: Alamance, Davidson, Forsyth, Guilford, Randolph & Rockingham counties. Main Office: Greensboro (122 N. Elm Street, Suite 504) Monroe-Union County Community Development Corporation Serves: Union County Main Office: Monroe (349 E. Franklin Street) Prosperity Unlimited Serves: Cabarrus, Iredell, Mecklenburg, Rowan & Stanly counties Main Office: Kannapolis (1660 Garnet Street, Suite A) Other Offices: Locust and Mooresville Raleigh Area Development Authority Serves: Cumberland, Durham, Edgecombe, Franklin, Harnett, Johnston, Lee, Nash, Wake, Wayne & Wilson counties Main Office: Raleigh (4030 Wake Forest Road, Suite 205) Salisbury Community Development Corporation Serves: Davidson, Iredell & Rowan counties Main Office: Salisbury (1400 West Bank Street) Telamon Corporation Serves: Durham, Franklin, Harnett, Johnston & Wake counties Main Office: Raleigh (5560 Mumford Road, Suite 202) Other Office: Clayton Triangle Family Services Serves: Chatham, Durham, Johnston, Orange & Wake counties ext. 125 Main Office: Raleigh (700 Blue Ridge Road, Suite 101) Other Office: Durham United Family Services Serves: Anson, Cabarrus, Mecklenburg & Union counties Main Office: Charlotte (601 E. Fifth Street) Other Offices: Cornelius, Concord & Monroe White Oak Foundation Serves: Chatham, Durham & Wake counties Main Office: Apex (1621 White Oak Church Road) 12

13 WESTERN REGION of the State Cleveland County Community Development Center Serves: Cleveland County Main Office: Shelby (823 W. Warren Street) Consumer Credit Counseling Services of the Carolina Foothills Serves: Polk & Rutherford counties Main Office: Spindale (200 Ohio Street) Northwestern Regional Housing Authority Serves: Alleghany, Ashe, Avery, Mitchell, Watauga, Wilkes & Yancey counties Main Office: Boone (869 Highway 105 Extension, Suite 10) Other Offices: North Wilkesboro Olive Hill Community Economic Development Corporation Serves: Burke, Catawba, Caldwell & McDowell counties Main Office: Morganton (420-C West Flemington Drive) On Track Financial Education & Counseling Services Serves: Ashe, Avery, Buncombe, Cherokee, Clay, Graham, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Polk, Swain, Transylvania, Watauga & Yancey counties Main Office: Asheville (50 S. French Broad Avenue, Suite 227) Western Piedmont Council of Governments Serves: Alexander, Burke, Caldwell & Catawba counties Main Office: Hickory (936 Fourth Street, SW) 13