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Behind on bills? State offers help

The North Carolina Foreclosure Prevention Fund offers interest-free loans to help those in danger of losing their homes because of temporary hardship, such as job loss.

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When the economy tanked, Tonia Jackson lost her job.

After a year of looking for work, bills started piling up and her unemployment benefits were not enough.

"I would use basically one credit card to pay a bill and then transfer the balance, because I was playing a sorting game,” she said. “I was out of money"

Then Jackson found out about the North Carolina Foreclosure Prevention Fund. The program offers interest-free loans of up to $36,000 for up to three years.

Loan applicants must meet specific criteria:

  1. You own the home, the home is in North Carolina, and the home is your primary residence.
  2. You currently owe no more than $300,000 on all your mortgages. Check with your lender to find out your balance
  3. You have lost your job or experienced a reduction in income through no fault of your own, or are facing a temporary financial hardship such as a divorce, serious illness, or death of a co-signer and need to find new employment.
  4. You experienced your job loss or temporary financial hardship or were honorably discharged from the military after January 1, 2008.
  5. You have an acceptable mortgage payment history prior to your recent unemployment or income loss.
  6. you demonstrate an ability to resume your mortgage payment once assistance ends.
  7. You are a legal U.S. resident.

"They wanted to know what my payments were and where the rest of my money was going and what income I had,” Jackson said.

The program pays the mortgage company directly. If applicants keep their homes for 10 years, they do not have to repay the loan.

"I live in a town home, so my full mortgage was paid - all of my escrow funds and my HOA fees during the course of a year," Jackson said.

That helped ease the stress.

Before getting into the program, Jackson said she broke down in tears during a couple of job interviews because she “felt so much pressure to make sure that something came through." But the security of knowing she wouldn't lose her home helped her confidence.

Eventually, she landed another job and resumed making her mortgage payments on her own.

"Don't let pride get in the way,” she said. “Get the help and save your home and your family."

WRAL is here to help with a Foreclosure Prevention Phone Bank on Tuesday from 4 to 7 p.m. Counselors will be on hand to answer your questions.

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