Is the NC Foreclosure Prevention Fund still open?
No. The program that paid North Carolina mortgages for homeowners who lost their jobs closed to new applications in 2019, and the COVID-era Homeowner Assistance Fund closed in 2023. Here is what is still available in 2026, and what actually works when you are behind.
What happened to the programs
N.C. Foreclosure Prevention Fund
Run by the N.C. Housing Finance Agency with federal Hardest Hit Fund money, it offered zero-interest, deferred loans of up to $36,000 to cover the mortgage for up to 36 months while a homeowner looked for work or retrained. It helped more than 28,000 homeowners.
Status: stopped accepting applications after July 31, 2019, when the money ran out. No replacement program was created.
Carolina Public Press / WFAE, July 2019
NC Homeowner Assistance Fund (HAF)
Funded by the American Rescue Plan, it paid up to $40,000 directly to servicers for homeowners with a COVID-19 hardship.
Status: no longer accepting new applications since November 2023.
NC Pandemic Recovery Office
Why you still see it online
The old Foreclosure Prevention Fund website is still up, and many articles describe the program as if it were open. Use it as history, not as a plan.
What is available in North Carolina now
Free housing counseling
The State Home Foreclosure Prevention Project connects you with a free HUD-approved counselor who can review your options and work with your servicer for you. Call 1-888-442-8188. It does not pay your mortgage.
N.C. Housing Finance Agency
Free legal help
Legal Aid of North Carolina helps low-income homeowners with foreclosure: 1-866-219-5262. The NC Lawyer Referral Service is 1-800-662-7660.
FHA loans
If your servicer is not responding, the FHA Resource Center is 1-800-225-5342. FHA borrowers may qualify for a partial claim, which moves missed payments into an interest-free second lien.
National hotline
The Homeowner’s HOPE Hotline offers free counseling at 1-888-995-4673.
What actually stops a foreclosure without a fund
With no state money to pay the mortgage, the options come from your servicer, a sale, or the court process. Which ones are open depends on how far along you are and whether you have equity.
Ask your servicer for loss mitigation
A repayment plan, forbearance, payment deferral or loan modification. Apply early and completely; a counselor can help you put the package together.
Sell while you still have time
If you have equity, a sale before the auction usually keeps far more of it than anything after. How selling before foreclosure works in Charlotte.
Short sale or deed in lieu
If you owe more than the house is worth. Short sales in Charlotte and deed in lieu in NC.
Know your deadlines
North Carolina gives you notice at each step. The NC foreclosure timeline, step by step.
For the full picture, see how to stop foreclosure in Charlotte and your options compared.
Watch out for fake relief programs
When a well-known program closes, scammers borrow its name. Real housing counseling in North Carolina is free, and it is illegal for mortgage relief companies to collect fees before they deliver results. Never pay upfront, sign your deed over, or send your payments to anyone but your servicer. If something feels off, call 1-888-442-8188 or report it to the N.C. Department of Justice.
Frequently asked questions
Is the NC Foreclosure Prevention Fund still accepting applications?
No. The N.C. Foreclosure Prevention Fund stopped accepting applications after July 31, 2019, when its federal Hardest Hit Fund money ran out. The old program website is still online, but there is no replacement program that pays mortgages.
Is the NC Homeowner Assistance Fund still open?
No. The NC Homeowner Assistance Fund, which paid up to $40,000 toward missed mortgage payments for homeowners with COVID-19 hardships, stopped accepting new applications in November 2023.
Does North Carolina have a mortgage relief program now?
Not one that pays your mortgage. The N.C. Housing Finance Agency runs the State Home Foreclosure Prevention Project, which connects homeowners with free HUD-approved housing counselors at 1-888-442-8188. The counselor can work with your servicer on a repayment plan, modification or other option.
Someone says they can get me foreclosure prevention money for a fee. Is it legit?
Be very careful. Legitimate housing counseling in North Carolina is free, and it is illegal for mortgage relief companies to charge upfront fees. If you are asked to pay first, sign over your deed, or send your mortgage payments to someone other than your servicer, walk away and call 1-888-442-8188.
General information for North Carolina homeowners, current as of October 2026. It is not legal, tax or financial advice. Terri Lombardo is a licensed real estate broker, not an attorney or tax adviser.
Free HUD-approved housing counseling is available to North Carolina homeowners through the NC Housing Finance Agency on 1-888-442-8188.
Behind on your mortgage in Charlotte?
There is no fund coming to pay it, but there are still options. Tell us where you are in the process and we will tell you honestly what is realistic.
Serving Charlotte and all of Mecklenburg County.