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  • Where to Find NC Mortgage Help

    One of the biggest challenges, which many people are facing in Northern Carolina, is who to rely on when considering purchasing a new home or getting mortgage help. If you are in this stressing position right now, you have come to right place because you are on your way to finding a reliable and trustworthy Mortgage help. The North Carolina state government has started numerous programs for its residents to make sure that they get sufficient help whether you own a home currently or just planning do so in the near future. The federal government has allocated millions of dollars known as the hardest Hit Fund to help the people of Northern Carolina.

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    mortgagerescueHave you ever wondered how a loan modification works? How banks and government agencies decide who gets approved and who gets busted? If you have, you are in luck. This article will look into how large lenders, such as Chase and Bank of America, analyze your loan application. This can help you make the right steps to increase your chances of getting your loan modification application accepted.

    First things first. What is a loan modification? A loan modification is a permanent change in the terms of your mortgage. Typical modifications include the term or length of the loan, the balance borrowed and the interest rate. It is generally used by borrowers who have negative equity (or very little equity) and are struggling to make their mortgage payments. If your credit history is good and you do have equity on your home, you are more likely to apply for a mortgage refinance than a loan modification.

    To qualify for a loan modification you must pass four steps with your lender.

    First, the really boring part. After visiting your bank branch or phoning their customer service number your bank will prepare a loan modification package, a checklist of documents and start oiling the cogs of their underwriting department. Your bank will determine your eligibility, prepare an application form for you, provide you with a checklist of all the documents you need to providfeThe review process for a loan modification can vary in length.

    Second, once you fill in the application and you wait. Chase claims their review process could take up to 30 days to review a loan modification in this stage. Other banks offer similar estimates.

    Step three is the trial period. This is a three-month trial period set by the FHA to assess if a homeowner can afford their mortgage and qualify for a FHA-approved mortgage. The trial lasts for three months. During this time you should not be late or fall behind in your payments or you will not qualify for the modification. Remember, in this stage you are proving your lender and the FHA what a great borrower you are and how justified they are to bet on your trustworthiness as a lender.

    Step 4 is Christmas day, if it ever arrives. Once you complete your three-month trial and provide your bank with all the required documentation you will have to wait for 30 days for a full review of your loan modification.

    Now is when the waiting game begins. You could wait up to another 30 days before you get an answer. You will most likely be asked to provide a full medical review. After a maximum of 30 days you will receive proof of your final loan modification contract after which you can start enjoying the benefits of your loan mods.

    state-flag-north-carolinaThe North Carolina Housing Finance Agency provides homeowners in North Carolina that have lost their job a chance of avoiding foreclosure through a low-cost loan. Learn how this loan can help you recover from a financial setback and save your home from foreclosure.

    The Program.

    The Home Protection Program is open to all eligible North Carolina homeowners that lose their job. The program provides borrowers with a loan of up to $24,000 to cover mortgage payments and related expenses, such as insurance, tax and maintenance costs. The major attraction of this loan is that you do not have to pay for it until 15 years have passed , or you sell or refinance your mortgage the property.

    There are three main ways this loan can help you. First, the Housing Finance Agency can offer you a one-time loan to cure the default on your mortgage. Second, you can get help while you try to find another job. Thirdly, long-term help is provided while you join a retraining program.

    How it works.

    If you apply for the Home Protection Program and you are accepted, the North Carolina Housing Finance Agency will put a 120-day stay on your foreclosure. This will stop your lender from selling your property. Once you receive the loan, the Housing Agency will use the money to cover the default on your mortgage. However, notice you will not receive the money. The housing agency will pay for your mortgage directly to your lender. Once all the money is used to pay for your mortgage you will continue making the payments.

    The Requirements

    To qualify for a Home Protection Program you must have lost your job, or at least suffered a 50 percent reduction of your income during at least two months in the last 2 years. Of course, the job loss must be through no fault of your own. In other words, you will not qualify if you were fired for stealing. Your mortgage must be secured on a real estate property located in North Carolina and is your principal residence. It is also important to have a good mortgage payment history before you lost your employment.

    This program has, up to now, helped over 500 families with financial aid, and over 5,000 homeowners with housing counseling.

    How to apply?

    You must apply through a participating housing agency in North Carolina. For more information on the criteria the agency will use to assess your application click here. If you think you qualify for this program, act quickly. If you wait too long, you could miss this chance of a new financial start.

    state-flag-north-carolinaFighting foreclosure is not something you want to do alone. Sure, there is plenty you can do on your own to avoid getting into financial trouble in the first place. However, once you can’t afford your mortgage payments, the crisis can start to feed on itself and it is easy for panic to set in. This is especially so in states like North Carolina where the foreclosure process is relatively short. In North Carolina homeowners can go from missing a payment to foreclosure in as little as two months from their first notice. The silver lining is that North Carolina has a long foreclosure warning period. A foreclosure prevention law passed in 2008 requires all lenders to provide a minimum of 45 days notice before starting foreclosure procedures. The idea is that homeowners use this “warning time” to put their finances in order and negotiate a mortgage workout with their lenders.

    Again, negotiating with your lender for a loan modification, mortgage refinance or a forbearance period is not easy on your own. That is why the Fight North Carolina Foreclosure organization recommends you contact a professional housing counselor as soon as possible. However, North Carolina state is not just asking homeowner to talk to housing counselors, practical aid is available. A leading agency in the prevention of foreclosures is North Carolina Housing Finance Agency. The North Carolina Housing Finance Agency helps low- to medium-income borrowers enter the housing market with low down payment mortgages and low interest rates. But that is not all, the agency also helps homeowners stay in their mortgages whether they bought a mortgage through them or not.

    Meet the Home Protection Program. This program tackles one of the biggest triggers of foreclosure: unemployment. Keeping up with monthly payments when your income has dried up can be difficult especially when you have a large family to care for. The Home Protection Program offer recently unemployed borrowers a loan to cover the mortgage payments they can no longer afford. The program offers loans of up to $24,000 at 0 percent interest. You can use the loan to pay for mortgage payments, property insurance, insurance and taxes. The best thing about this program is you do not have to pay for the loan unless you refinance or sell the home.

    Learn who is eligible for the Home Protection Program and what you need to do to apply in our next post.

    state-flag-north-carolinaNorth Carolina has several programs in place to protect homeowners from foreclosure. If you are a North Carolina resident and are facing foreclosure you can find the aid you need. However, you need to act soon. Although North Carolina is a proactive state with good programs in place, it is also a “fast-track” state for foreclosures. The timeline from delinquency to foreclosure can be as short as 60 days.

    North Carolina has a judicial and non-judicial route for foreclosures. The non-judicial route is for mortgages that include a power of sale clause pre-authorizing the lender to sell the property to pay off the balance of the mortgage. In both cases a hearing must be held with the county’s clerk of the court to determine if a foreclosure sale can legally take place.

    North Carolina state laws passed in 2008 require lenders to provide borrowers with at least 45 days warning before starting foreclosure proceedings. This is longer than most states, California for instance, only requires 30 days before a notice of default is sent. You can use those 45 days to negotiate with your lender and stop the foreclosure from ever starting.

    Foreclosures in North Carolina have spiked by 10.6 percent, and 60 percent of all foreclosures had borrowers with good credit that should have been able to avoid foreclosure. According to official reports, North Carolina’s State Home Foreclosure Prevention Project has helped over 2,000 homeowners avoid foreclosure and provided housing counseling to over 6,000 struggling homeowners. These programs don’t not only help homeowners facing foreclosure, they also helps the economy at large, including the neighbors of struggling borrowers that would see the market value of their homes decrease if the sale prices of homes in their neighborhood dropped. According to one estimate, foreclosure avoidance work carried out by North Carolina’s Home Foreclosure Prevention Project has avoided losses in the realm of $175 million.

    One of the leading projects in the Fight NC Foreclosure program is the provision of free housing counseling advice to borrowers. There are 34 housing agencies in the state low- to medium-income borrowers can approach for free for advice and help when negotiating with lenders. To take advantage of this help you can either call 1-866-234-4857 or visit the Housing and Urban Development Department’s website for an up-to-date list of housing agencies in your area.

    This is just one of the many programs you can apply for in North Carolina. Our next post will look into how North Carolina’s Housing Finance Agency and NC Foreclosure Help can give you the aid you need to save your home.