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Michelle Hoag-Charlene - Foreclosure

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					      North Carolina
Home Protection Program and
        Loan Fund
           Origin and Purpose
In response to an increasing number of foreclosures in
2004, the North Carolina General Assembly created
the Home Protection Pilot Program.

The program is to “assist North Carolina
workers who have lost jobs as a result of
changing economic conditions.”

NCHFA was appointed to develop, implement and
administer the pilot program.
Program Eligibility Criteria:

 Job Loss due to changing economic
  conditions
 Owner of real property

 Satisfactory mortgage & credit payment
  history prior to job loss
 Ability to resume mortgage payments
  after assistance ends
What type of assistance is available?

   Deferred payment loans at 0% interest

   Due & payable in 15 years

   Or if the home is sold, refinanced or is no longer the
   borrower’s primary residence.
Maximum loan amount is equal to the lesser of
   $20,000.00
   18 months of monthly mortgage payments (PITI)
   or the Minimum amount required to reinstate a
   homeowner (i.e. bring their mortgage current)
   Effective November 1, 2008:
   Maximum loan amount increases to $24,000
   Maximum months of assistance increases to 24
 Partner Housing Counseling Organizations
                 (PHCO)
Prescreening                    Evaluates Likelihood of Ability to
                                Resume Regular Payments
Evaluates Eligibility



120 Day Stay of Foreclosure
                        According to NC Session Law
                        2005-622 9 (as amended), once the
                        PHCO has submitted a complete
                        application with supporting
                        documentation, the Agency will
                        contact the Mortgagee/Servicer who
                        is required to impose a stay of the
                        foreclosure for up to 120 days
                        while the homeowner is being
                        considered for assistance.
               Loan Proceed Disbursal

                                   Agency

                                                        HomeOwners
       Taxes
                       Servicer             Insurance   Associations



                       Principal



                       Interest



*NOTE: No loan proceeds are paid directly to the borrower
       HPP Statistical Data
       (From Inception Date)




800                     782
700
600
500                                                             Paid in Full:   16
400                                                             Foreclosed :    12
                                          358
300
200                                                      230
100
  0
      Applications              Loans       Fully Disbursed
      Processed                Approved          Loans



                                           46% Approval Rate
                                          70% Long Term Loans
HPP Statistical Data
(From Inception Date)




                 Funds Disbursed    Partner Performance

                   $4.5 Million     Counties with highest approval rate:
                                             Cabarrus
                                             Caldwell
        Funds Available $3.027             Cumberland
                                              Forsyth
                Million                      Guilford
                                              Rowan

      Estimated Value of Homes
                 Saved              2,100 Clients received counseling
                                              in FY08.
              $30 Million
N.C. Housing Counseling Agencies in
Home Protection Program & Loan Fund

   Choanoke Area Development Association
   Cleveland County CDC
   CCCS of the Carolina Foothills
   CCCS of Forsyth County
   CCCS of Gaston County
   CCCS of Greater Greensboro
   CCCS of United Family Services
   CCCS of Western North Carolina
   Cumberland Community Action Program
   Franklin-Vance-Warren Opportunities
   Kingdom CDC
N.C. Housing Counseling Agencies in
Home Protection Program & Loan Fund
   Northwestern Regional Housing Authority
   Northeastern Community Development Corporation
   Prosperity Unlimited
   Rocky Mount-Edgecomb CDC
   River City Community Development
   Salisbury CDC
   Sandhills Community Action Program
   Triangle Family Services (*added Sept. 2008)
   Twin Rivers Opportunities, Inc.
   Western Piedmont Council of Governments
   Wilmington AME Zion Housing Development Corporation
   Wilson Community Improvement Association, Inc.
           HPP Expansion Timeline
           Expansion from 61 to 100
             counties to be finalized
             November 1, 2008


                     Expansion adds 5 new Counseling Organizations

  CCS of Gaston County
  Cumberland Community Action Program, Inc.
  Northeastern Community Development Corporation
  River City Community Development
  Triangle Family Services (added September 1, 2008)


NCHFA
Stewardship, Caring, Integrity, Professionalism
P.O. Box 28066 Raleigh, North Carolina 27611
              Success Stories
Paralegal
  Laid off from a law firm and assistance ended in 8/07. Borrower
  received training to be a Paralegal and is working for $25K.
GED
  Laid off from Broyhill and assistance ended 4/07. Borrower obtained
  his GED and is now employed full time with another furniture
  company making $26K.
Respiratory Care Therapist
  Laid off from Sprint and assistance ended 8/06. Borrower received
  training and now has full time employment making $45K.




   NCHFA
   Stewardship, Caring, Integrity, Professionalism
   P.O. Box 28066 Raleigh, North Carolina 27611
National Foreclosure Mitigation
      Counseling Program
Purpose of Funding


 In response to the nationwide subprime
 foreclosure crisis, Congress approved and
 President George W. Bush signed
 legislation authorizing $180 million for a
 National Foreclosure Mitigation Counseling
 (NFMC) Program.
National Foreclosure Mitigation
Counseling (NFMC) Program:
   This was a one-time appropriation designed to
    support a rapid expansion of foreclosure intervention
    counseling capacity on a short-term basis.

   National Foreclosure Mitigation Counseling
    Program funds will be available until they are fully
    expended, with a projected end date of December 31,
    2008.

   The intent of the NFMC funding is to expand
    counseling opportunities available to American
    families facing foreclosure.
North Carolina Program:

   $3.0 Million awarded to N.C. Housing
    Finance Agency for North Carolina in March
    2008

   23 Housing Counseling Agencies are
    currently participating in the North Carolina
    program
Eligible Activities


   There are two categories of eligible activities:

(1.) Counseling Services

(2.) Program-Related Support
Counseling Services Fees:

   Level One (Intake/Assessment) $150

   Level Two (Action Plan)      $200

   Level Three (Both)           $350
Program Related Support
Program funds available to support:
   Cost related to temporary hiring and training of new
    counseling staff
   Establishing a triage system for effective use of
    counseling times
   Outreach/Marketing
   Orientation and education sessions
   Infrastructure development and communication
   Collecting data and preparation of quarterly reports
   Quality control
N.C. Housing Counseling Agencies
participating in NFMC Program:
   Blues Springs-Hoke County CDC (*added Sept. 2008)
   Choanoke Area Development Association
   CCCS of the Carolina Foothills
   CCCS of Durham
   CCCS of Fayetteville/Cumberland Community Action Program
   CCCS of Forsyth County
   CCCS of Western North Carolina
   CCCS of United Family Services
   Davidson Community Action, Inc.
   Durham Affordable Housing Coalition
   Durham Regional Community Development Group
   Franklin-Vance-Warren Opportunity, Inc.
   Kingdom CDC
   Housing Authority of the City of High Point (*added Sept. 2008)
   Northeastern CDC
   Olive Hill Community-Economic Development Corp.
   Prosperity Unlimited
   River City CDC (*added Sept. 2008)
   Salisbury CDC
   Twin Rivers Opportunities
   Western Piedmont Council of Governments
   Wilmington AME Zion Housing Development Corp. (*added Sept. 2008)
   Wilson Community Improvement Association
                        Facts
   North Carolina is expecting 50,000-60,000
    foreclosure filings per year, for the next 3 to 4
    years.
   In January–February of this year, more than
    10,000 foreclosure filings have been made.
   Nine counties (Cabarrus, Cumberland,
    Durham, Forsyth, Gaston, Guilford,
    Mecklenburg, Union & Wake) accounted for
    50% of the foreclosures in our state.
                      Facts


   One foreclosure in a neighborhood is
    estimated to cause other home values to
    decrease $15,000.00 - $ 20,000.00

				
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