How to Stop Foreclosure in North Carolina
- 1). Look into the Home Protection Pilot Program. This program went into affect in 2004 to help homeowners avoid foreclosure due to job loss. It is available in the hardest hit counties throughout the state. According to its website, the Home Protection Pilot Program offers zero interest on loans up to $20,000. This is to cover past mortgage payments up to 18 months or the lowest amount needed to bring the loan current. Repayment of the loan can be deferred for up to 15 years or until the house is sold or refinanced.
- 2). Contact legal aid. A homeowner can take advantage of free legal aid to seek advise on how to handle a pending foreclosure. The legal aid attorney can recommend a course of action, whether it be a way to avoid the foreclosure all together or to pursue the possibility of a bankruptcy filing.
- 3). Call the HOPE hotline. Homeowners can also seek financial advise from expert volunteers through the Hope hotline. The number is (888) 995-HOPE.
- 4). Contact North Carolina Housing Coalition Foreclosure Defense Project. The Defense Project coordinates multiple non-profit organizations and resources available to struggling homeowners. They can connect you with people in your area who can help you with your specific situation.
- 5). Use your time wisely. When you apply for the Home Protection Pilot Program you'll receive a 120 day hold on your foreclosure. Use that time to figure out Plan B. What you are going to do if you do not receive the relief loan to bring your mortgage up to date. Use the 120 days to work out a loss mitigation strategy, a repayment plan, or to organize your finances to file bankruptcy. Be ready to act the day you are notified whether or not you'll receive the loan. The longer you wait, the less options you will have.
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