Foreclosure prevention effort expands to recent veterans, furloughed workers

Updated:

RALEIGH, N.C. - The North Carolina Foreclosure Prevention Fund has been expanded to help veterans recently separated from service and military or civilian workers who are currently furloughed or facing an impending furlough.

The state-designed foreclosure prevention program has already helped nearly 14,000 workers who have lost their jobs save their homes. Funding is available to assist another 7,000.

The fund makes mortgage payments for qualified unemployed workers as well as homeowners who have suffered certain other hardships, such as divorce, illness or death of a co-signor, while they look for work or complete job training. It is funded by the U.S. Department of the Treasury.

Eligible veterans include those who have been honorably discharged from the military since Jan. 1, 2008, and who have a Certificate of Release of Discharge from Active Duty. Unlike other applicants, veterans do not need to be receiving unemployment benefits to qualify.

Eligible veterans may be able to get help in one of three ways:

• one-time assistance to bring the mortgage current
• a zero-interest, deferred loan of up to $36,000, paying monthly mortgage and related costs for up to 36 months while the veteran completes job training and looks for work. If the owner continues to live in the home for at least 10 years, the loan is satisfied and no repayment is required.
• a zero-interest loan up to $30,000 to pay off a second mortgage. This can help homeowners who find new jobs at reduced incomes by reducing their total monthly payment to an affordable level.

Furloughed workers with a demonstrated need are eligible for short-term assistance that pays their mortgage until they are back at work. Eligible workers can only receive this assistance for an 18-month period and may receive multiple series of furlough payments during that time.

For more information, visit www.NCForeclosurePrevention.gov.