If you are one of the many North Carolina homeowners having trouble making mortgage payments, it is likely that you are wondering what relief options are available to you. The good news is that you can get back on track with a number of programs. This blog post will provide an overview of some of the most popular options. So if you’re struggling to make your mortgage payments in North Carolina, read on for information about the programs that may be able to help.
How to Get Started
Making your lender aware of your financial situation is the first step to seeking mortgage relief. Mortgage lenders are often willing to assist homeowners who are unable to pay their monthly mortgage payments. A HUD-approved housing counselor can also help you if you’re not sure what to say to your lender or if you’re not sure how to approach them.
Mortgage Relief Solutions
It is possible to obtain mortgage relief in a variety of ways. The interest rate on your mortgage can be lowered, your payments can be reduced, and the term of your mortgage can be extended through various programs.
Principal Reduction
Principal reductions may be available if your mortgage is more than the value of your home. Therefore, your loan balance would be reduced according to your home’s current market value.
Mortgage Modification
If you are having trouble making payments, you may be able to modify the terms of your mortgage loan. A mortgage modification involves negotiating a new repayment plan with your lender. You may even be able to negotiate a lower interest rate with your lender.
Forbearance
Forbearance agreements are often available to homeowners in financial difficulty. During this time, you make fewer or no payments as you get your finances back on track.
Loan Refinancing
There may be an option for you to refinance your mortgage with a lower interest rate if you’re having trouble making payments. Repaying your loan will be easier if your payments are lower.
Short Sale
A short sale means selling a property for less than the mortgage balance. With the proceeds of the sale, the debt is repaid.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure is an option if you cannot sell your home or reach a loan modification agreement.
Mortgage Relief Programs in North Carolina
Homeowner Assistance Fund (HAF)
The North Carolina Homeowner Assistance Fund helps homeowners in North Carolina prevent mortgage delinquencies, defaults, displacements, and foreclosures caused by COVID-19.
Eligibility Requirements
Assistance may be available if you have fallen behind on your mortgage or housing-related payments by at least 30 days due to the pandemic.
You must also meet the following requirements:
- Have an income below $90,000
- Occupy and own the home as a primary residence in North Carolina
- Demonstrate a financial hardship after January 21, 2020, due to COVID-19
How to Apply
Register and apply here.
Foreclosure and Its Consequences
To prevent foreclosure in North Carolina, it is important to understand how it works and its consequences. If you fall behind on your mortgage payments, your lender may foreclose on your home, a process that can take over three months. You should avoid foreclosure at all costs because it can negatively impact your credit score.
Prevent Foreclosure in North Carolina with Favor Home Solutions’ Save My Credit Program
If you’re looking for a simple solution to avoid foreclosure, we can help! At Favor Home Solutions, we’re 100% committed to helping you regain your peace of mind and protecting your credit! Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to go through the home selling process or get a foreclosure mark on your credit report.
You might even be able to pocket some money at the end! No fees, no gimmicks, and no obligations. Contact us today to get started!
