Homeowners facing foreclosure could be eligible for up to $36,000

By Emily Ford

eford@salisburypost.com

SALISBURY — People in danger of losing their home to foreclosure may qualify for a government program that offers up to $36,000 to help pay a mortgage.

“It’s a wonderful program,” said Lou Adkins, a housing counselor with the Salisbury Community Development Corp. “It’s saved a lot of people’s homes.”

The N.C. Foreclosure Prevention Fund offers help to North Carolina homeowners who are struggling to make their mortgage payments due to job loss or other temporary financial hardship, such as the death of a loved one, divorce or serious illness.

The fund is offered by the N.C. Housing Finance Agency, a self-supporting state agency, and paid for through the U.S. Department of the Treasury's Hardest Hit Fund.

Services are provided by participating HUD-approved counseling agencies statewide, such as the Salisbury CDC.

In her office on West Bank Street, Adkins uses the fund’s Mortgage Payment Program to help people keep their homes. The program provides zero-interest loans of up $36,000 over 36 months.

“The good thing about this loan is it’s not just for unemployed people,” she said.

Foreclosures have been on the rise in Rowan County since 2003, when Pillowtex closed. The county had 915 foreclosures last year, 101 more than the year before.

Already in 2011, Rowan has had 425 foreclosures.

But starting this month, new federal regulations on lenders have slowed the foreclosure rate, said Jeff Barger, Rowan County clerk of court.

Substitute trustees overseeing foreclosures have been asking courts to postpone hearings because lenders are slow to provide affidavits of default, which have to meet tougher standards, Barger said.

“Before, they were cranking out those affidavits and rubber stamping them,” he said.

Wednesday, only six of 16 scheduled foreclosure hearings went forward, Barger said. Ten others were delayed or canceled.

Barger said he often refers people to the Salisbury CDC.

“They have done wonders with people trying to save their homes,” he said.

Adkins said the CDC — a nonprofit agency funded by grants that serves Rowan, Davidson, Davie and Iredell counties — takes about 30 calls a day from people desperate to save their home.

“There are a lot of tears shed in our office,” she said.

Many clients had good jobs and never paid a bill late.

“And then all of a sudden they lose their jobs or income, and they are behind,” Adkins said. “It’s so stressful.”

The N.C. Foreclosure Prevention Fund will catch up homeowners who are behind on their mortgage payments.

“It's all to help you get back into the job market,” she said. “If you go on disability, you don’t qualify.”

Loan recipients must be looking for a job or going back to school. Recipients who stay in their home for at least 10 years after the loan don’t have to pay it back.

So far, Adkins has closed 11 loans since December and has 40 to 50 applications pending. It takes about three months to be approved.

Homeowners must provide extensive paperwork and fill out an application. The CDC will provide a list of required records and assign callers to a group session to determine eligibility before they meet with Adkins.

Loan recipients also must agree to credit counseling throughout the duration of the loan.

While the Salisbury CDC also refurbishes and builds homes to encourage first-time home ownership, most of the agency’s efforts are now directed at preventing foreclosure.

“We don't give up on anybody,” Adkins said. “We try to make sure that nobody is foreclosed on. We do whatever we can to prevent it.”

Adkins works with Robbie Stevens, another housing counselor, and Executive Director Chanaka Yatawara.

To reach the CDC, call Intake Coordinator Mary Powell at 704-216-2717.

Think you’re eligible?

You may eligible for loans if you:

• Are the property owner of the home you live in.

• Owe no more than $275,000 on all your mortgages. Check with your lender to find out your balance.

• Live in North Carolina.

• Have lost your job or experienced a reduction in income through no fault of your own, or face a temporary financial hardship such as a divorce, serious illness or death of a co-signor and need to find new employment.

• Have good mortgage payment history prior to your recent unemployment or income loss.

• Can pay your mortgage once the loan ends.

• Are a legal U.S. resident.

Before applying for the N.C. Foreclosure Prevention Fund, find out if you are eligible by completing the questionnaire at www.ncforeclosureprevention.gov/questions.aspx.

Contact reporter Emily Ford at 704-797-4264.