Home Mortgage Modification Programs in North Carolina: An Overview of Options

Avoid foreclosure with state and federal home mortgage modification programs in North Carolina.

If you own a home in North Carolina and are behind on your mortgage because of a hardship, you could qualify for a loan modification program. There are several home mortgage modification programs for North Carolina homeowners.

North Carolina is one of the 18 states to get federal money from the federal Hardest Hit Fund. The North Carolina Foreclosure Prevention Project provides interest-free loans to help you get your mortgage or second mortgage back in good standing as well as other foreclosure assistance. Call a housing counselor to find out if this program fits your situation.

Home Affordable Modification Program (HAMP)

If you are employed, yet struggling to make your mortgage payments, you may qualify for the home affordable modification program (HAMP). Under this, your lender modifies the terms of your loan in order to lower your monthly payments to better fit your budget. This amount is sometimes as low as 31 percent of your total monthly income. Banks and lenders that participate in this program get cash incentives for refinancing your home loan.piggybank-house

Principal Reduction Alternative

Under HAMP, the Principal Reduction Alternative (PRA) is one of the home mortgage modification programs for North Carolina homeowners who owe more on their mortgage loans than the current value of their homes. To qualify for this program, the house must be your residence and your mortgage payment must exceed 31 percent of your income.

Home Affordable Refinance Program (HARP)

If you are not behind on payments but cannot get traditional financing, HARP can help you refinance for a more affordable mortgage. You must have a mortgage backed by Freddie Mac or Fannie Mae issued before May 31, 2009.

Home Affordable Foreclosure Alternative (HAFA)

If you don’t qualify for the other mortgage modification programs in North Carolina, you can avoid foreclosure through the Home Affordable Foreclosure Alternative (HAFA) program. Under this program you can sell through a short sale or give the home back to the lender with a Deed-in-Lieu of Foreclosure. You may also be eligible for up to $10,000 for relocation. To qualify, you have to prove your financial hardship with documentation. Additionally, your lender may have internal programs to help you catch up on payments or refinance your mortgage.

Many homeowners have found assistance through home mortgage modification programs in North Carolina. To learn about these programs, talk to your lender and an authorized housing agent from state and federal programs.

If you think you might qualify for refinancing, RealtyNow can connect you with lenders in your area.

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