The following program will be available beginning in June 2011 in the 50 “hardest hit” counties.
Due to recent economic challenges, you may find you can no longer afford the payment on your second mortgage.
The N.C. Foreclosure Prevention Fund offers a Second Mortgage Refinance Program for employed North Carolina homeowners who are struggling to pay their second mortgage because of previous unemployment, a cut in salary, or a temporary financial hardship. Services are provided by participating HUD-approved counseling agencies statewide.
If you are at risk of foreclosure, the Second Mortgage Refinance Program may be able to help if you:
- live in one of the 50 “hardest hit” counties
- are earning less than you have in the past
- are facing a temporary financial hardship (for example, you have lost income due to divorce, separation, serious illness, or death of a co-signor)
- have good payment history on your primary and second mortgage prior to your recent income loss or financial hardship
If you qualify, the Second Mortgage Refinance Program may help you reduce your monthly payments by refinancing your second mortgage. The program offers a zero-interest, deferred payment loan of up to $30,000 to pay off your existing second mortgage.
If you remain in your home for 10 years, the loan will be forgiven, and you do not have to pay it back. After you have lived in your home for five years, the loan is reduced by 20 percent a year for years six through 10 until you owe nothing. You repay the total amount only if you sell or refinance the home in the first five years, and only if the sale proceeds are sufficient to repay it. Please note that if you refinance your property for better loan terms, we will subordinate our second mortgage; however, if you refinance to consolidate debt or take out cash, the second mortgage loan must be repaid.
This program is only for homeowners who are not eligible for the federal Home Affordable Modification Program (HAMP). If your lender has told you that you do not qualify for HAMP and you have an unaffordable second mortgage, you may qualify for the Second Mortgage Refinance Program. Please talk to a housing counselor or call 1-888-623-8631.
Homeowners who have participated in the Mortgage Payment Program and are now re-employed may be eligible for the Second Mortgage Refinance Program if they still have a demonstrated financial need. A housing counselor can tell you more.
Find a participating HUD-approved housing counseling agency near you.