A North Carolina borrower broke a 2025 private plan that cut the payment by 4 percent. Does that reduction meet the payment-reduction condition for the failed-private-plan exception to the state foreclosure pause?
Correct Answer
C) Not that exception: the reduction must have been 6 percent
The second limb of the first exception covers a plan that reduced the monthly payment by six percent from the scheduled monthly payment and resulted in a monthly payment of principal, interest, taxes and insurance of less than 31 percent of household income. Other choices: the terms of the plan matter for this limb; the figure is 6 percent; and a writing is not the test. Source: 04 NCAC 03M .0703(a)(1)(B)
Why This Is the Correct Answer
The second limb of the first exception covers a plan that reduced the monthly payment by six percent from the scheduled monthly payment and resulted in a monthly payment of principal, interest, taxes and insurance of less than 31 percent of household income. Other choices: the terms of the plan matter for this limb; the figure is 6 percent; and a writing is not the test. Source: 04 NCAC 03M .0703(a)(1)(B)
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