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Raleigh to provide loans to tornado victims

Posted June 7, 2011

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— The Raleigh City Council on Tuesday approved a loan program for local residents whose homes were badly damaged by tornadoes in April.

The council voted unanimously to shift $400,000 from city housing bonds to create the loan fund. Homeowners have 90 days to apply for the loans.

Under the program, low- and moderate-income residents can apply for loans of up to $20,000 to make enough repairs to restore their homes to the city's minimum living standards. Payment on each loan would be deferred until the home is sold or is no longer the principal residence of the borrower.

To obtain a loan, homeowners must have exhausted all other financial assistance, including their homeowner's insurance and federal aid, and be up to date on their mortgage and property taxes. They also must prove that the damage to their homes occurred during the April 16 storms.

Income limits on loan applicants range from $43,550 for an individual to $82,050 for a family of eight.


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  • coolwill43 Jun 7, 2011

    What happens if they owe more on the house than it is worth? What happens if the house goes into foreclosure? What if the house value stills decline, don’t forget it was hit by a tornado. I guest the hurricanes don’t return to the beech. And does city charter gives them the right to do this, kind of like Obama care and giving tax dollars to business and not you and me. I need to repair some things with my home can I get a loan? What about someone’s legal authorization in this country? What about a landlord can he get the money?

  • ncspamfish Jun 7, 2011

    that program is a big mistake. just watch, wait and see.

  • timanddarlene Jun 7, 2011

    You've got to be kidding me.

  • NoWayyyyy Jun 7, 2011

    in other words, fatchance,,,,its a gift :)

  • fatchanceimwrong Jun 7, 2011

    I wish I could get a loan like that. So if the borrower never sells his house he doesn't have to ever pay the loan back. Maybe the estate will. And how is the gov't going to moniter cases where someone buys a new house and rents the existing one?

    In order to perfect their liens on the houses the gov't will have to draw up a Deed of Trust and file it at the courthouse. That's going to require an attorney. Who's going to pay the attorneys? To make sure they aren't lending money on houses that have no equity or are upside down, they'll need an appraisal. Who's going to pay the appraisers?

    When someone sells their house and pays off the mortgage, what if there is not enough left over to payoff the $20K loan? Is the gov't (us taxpayers) going to eat that?

    It's well-intentioned, but they are opening up a can of worms that is going to turn out badly.

  • NoWayyyyy Jun 7, 2011

    and....how do you know that they will spend the gift, um, I mean, loan on the home? And what/who decides what the city's minimum living standards are? Mine surely differ from yours. Who even knows or will verify that these repairs need to be made and were not made by insurance? Who will track when these people leave their homes (sold or is not the principal residence of the borrower)? Is someone going to track this monthly, semi, or annually? And when it is "discovered" that they are gone and don't have sufficient funds to pay it back, what then? I know that the last house I sold, I barely broke even, let alone walked away with 20K in equity - that is a joke. So in other words, who is absorbing this? I can't hear you.......hmmmmm, that's what I thought. Nevermind.....

  • WooHoo2You Jun 7, 2011

    So the people that contribute nothing or very little get the loans. I expect others that are paying the tab and lost their property, really appreciate once again being discriminated against by the Government.-whatelseisnew

    Like the elderly?

  • we_all_have_it_coming Jun 7, 2011

    So the rest of us have to get a home equity loan?

    Man... Raleigh surely has the cash!!

  • we_all_have_it_coming Jun 7, 2011

    Who comes up with this stuff????

    "Payment on each loan would be deferred until the home is sold or is no longer the principal residence of the borrower."

    You can get $20,000 FREE.... and only pay it back when the home is sold?????


  • LambeauSouth Jun 7, 2011

    one other limit not mentioned

    a US citizen