Program to hold off foreclosure may be extended
Test helps owners who have lost jobs
Published: Sat, Mar. 08, 2008 12:30AM
Modified Sat, Mar. 08, 2008 05:56AM
E-Mail
Print
tool name
closeA four-year-old program that tries to help workers keep their homes if they lose their jobs could expand this year to the whole state.
Sen. Walter Dalton, a Rutherfordton Democrat, said he plans to introduce legislation when the General Assembly returns in May to move the Home Protection Pilot Program beyond the 61 counties it now covers.
The program, administered by the N.C. Housing Finance Agency, offers qualified applicants an interest-free bridge loan equal to the lesser of $20,000, 18 months of mortgage payment or the amount needed to bring payments up-to-date.
THE HOME PROTECTION PROGRAM
Sixty-one counties now participate in the loan program. Funds are distributed on a first-come, first-served basis.
Loan payments are deferred for 15 years, or until the home is sold or refinanced.
To be eligible for a loan, applicants must meet five criteria:
* Live or have worked in one of the qualifying counties.
* Have lost a job because of changing economic conditions.
* Have a mortgage that is secured by real property.
* Be able to resume payment once assistance ends.
* Have had stable employment and credit history before losing their job.
Consumers can apply through a local agency office of the N.C. Housing Finance Agency. For a list of participating counties and links to the local housing offices, go to, www.nchfa.com/Nonprofits/HPPPhomeprotectionpilot.aspx.
More Business
The funds can be used to make mortgage payments or pay homeowners' insurance or taxes.
Hundreds helped
So far, 312 families have received loans, and 439 people have received stays of foreclosure, said Margaret Matrone, a spokeswoman for N.C. Housing Finance Agency.
Matrone said the average loan amount is $10,000.
Dalton pushed for the program after unemployment rates rose in counties that were losing textile jobs. It started in 2004 in 27 counties. Alamance, Franklin, Granville, Harnett, Person, Vance, Warren and Wilson counties are among the 61 counties now participating.
Given the rise in foreclosures across the state, which were up 9.4 percent in 2007 over 2006, Dalton sees a need for the program in all 100 counties.
"As we continue to experience job loss and record foreclosures, we must help those who are struggling to keep up with their mortgage payments," Dalton said.
The program gives applicants an immediate 120-day stay of foreclosure while their application is being reviewed. "Sometimes that has been enough time for the person to find work and not have to borrow any additional money," he said.
Dalton proposes doubling the program's funding to $3 million, increasing the network of housing counselors and providing funds for marketing to increase awareness about the program.
Dalton said he is confident that he will get the support to expand the program just as he did the last time. "We have had a lot of support in the past," he said. "The issue will be finding the money in the budget."
vicki.parker@newsobserver.com or (919) 829-4898
Get it all with convenient home delivery of The News & Observer.
The News & Observer is pleased to be able to offer its users the opportunity to make comments and hold conversations online. However, the interactive nature of the internet makes it impracticable for our staff to monitor each and every posting.
Since The News & Observer does not control user submitted statements, we cannot promise that readers will not occasionally find offensive or inaccurate comments posted on our website. In addition, we remind anyone interested in making an online comment that responsibility for statements posted lies with the person submitting the comment, not The News and Observer.
If you find a comment offensive, clicking on the exclamation icon will flag the comment for review by the administrators, we are counting on the good judgment of all our readers to help us.
