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HFA offers North Carolina Second Mortgage Assistance

Millions of Americans are looking for better paying jobs but many North Carolina homeowners have been struggling in 2010 more than ever.  Second mortgage foreclosure rates continue to rise but many homeowners are hopeful that mortgage help is on the way with government relief.   North Carolina residents have been applying for first and second mortgage modifications from lenders at a record pace. 

The Treasury announced last Wednesday that the N.C. Housing Finance Agency will be receiving $159 million from the U.S. Treasury Department to help unemployed North Carolinians save their homes from foreclosure.   Even though, North Carolina mortgage rates remain at record lows, the state was one of five states approved for a total of $600 million. Arizona recently received second mortgage relief that was beginning to reach homeowners.  With the funding, the HFA will be able to expand its Home Protection Program, estimated to help 7,200 homeowners in the next three years pay their first and second mortgage loans or refinance into a new more affordable home loan.

According to housing experts both 1st and 2nd mortgage foreclosures have been on the rise this year statewide because of high unemployment.  Foreclosure starts in the county totaled 985 properties in the first half of 2010, up 35 % from the same period in 2009. Connie Helmlinger, a spokeswoman for the HFA said, “Given the fact that we’ve lost more than a quarter of million jobs between 2007 and 2009, and we now have 457,000 people out of work in June, this is very much needed.”  The HFA’s current program, the Home Protection Program, was started by the N.C. General Assembly in an effort to help homeowners who lost their job, keep their homes. The program helped 600 homeowners across the state since 2004. 

HFA introduce several unique programs in an effort to help homeowners who are receiving reduced wages by paying a portion of their home loan. One option will help refinance high-cost second mortgages and the other will reduce principal from their home mortgage through a loan modification.   The second-mortgage refinancing program will be offered only in counties with severely high unemployment. All of the programs will provide assistance in the form of a zero-interest loan forgiven over 10 years, as long as the owner continues to live in the home.   The HFAs submitted their Hardest Hit Fund proposals to Treasury on June 1. Treasury then reviewed each state’s proposal to ensure compliance with the Emergency Economic Stabilization Act of 2008.

Posted in 2nd Mortgage News, Foreclosure Prevention, North Carolina Mortgage, Second Mortgage Modification.

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