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Foreclosure Prevention Fund to Assist 21,000 North Carolina Borrowers

The North Carolina Housing Finance Agency's new ""Foreclosure Prevention Fund"":http://www.NCForeclosurePrevention.gov is now available statewide through participating HUD-approved counseling agencies.

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Financed by the Department of Treasury's Hardest Hit Fund, the federal grant money will be used to financially assist homeowners struggling to pay their mortgages due to job loss or other temporary hardships.

""We expect the N.C. Foreclosure Prevention Fund will enable 21,000 North Carolina unemployed workers to keep their homes,"" said A. Robert Kucab, executive director of the North Carolina Housing Finance Agency.

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""By reducing the number of foreclosure sales, the effort will also help stabilize property values in communities across the state,"" Kucab added.

According to a statement from the state-run agency, the new fund will make mortgage payments for qualified unemployed workers while they seek jobs or complete job training in new fields. Those who are behind on mortgage payments because of divorce, illness, or other temporary hardship may also qualify for help. The program is expected to run for the next three to five years.

Assistance is provided with zero-interest deferred loans up to $24,000 or 24 months of mortgage-related payments. In high unemployment counties, the maximum assistance is $36,000 or 36 months. If the owner continues to live in the home for 10 years, the loan will be considered satisfied and no repayment will be due.

Eligible homeowners must have good mortgage payment histories prior to the job loss or hardship, have potential to resume mortgage payments once the assistance ends, and meet other program guidelines.

The Hardest Hit Fund is authorized under the Emergency Economic Stabilization Act of 2008. It is available in 18 states and the District of Columbia. North Carolina was selected because of the large percentage of the population living in counties with high unemployment rates in 2009.

About Author: Heather Cernoch

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