The Keep Your Home California program, which can provide cash assistance or even reduce mortgage principal for distressed homeowners, has relaxed eligibility requirements.
The program – which oversees the Unemployment Mortgage Assistance, Mortgage Reinstatement Assistance, Principal Reduction, and Transition Assistance programs – is also increasing cash payouts to some struggling homeowners.
Keep Your Home California was created to provide temporary help for homeowners who may have lost their jobs but wish to remain in their home.
Changes in the program include:
TIME EXTENDED: Unemployed homeowners who qualify can now receive up to $3,000 per month for up to nine months. The program previously was capped at six months.
CASH ASSISTANCE: The Mortgage Reinstatement Assistance Program has also increased total aid to $20,000 from $15,000.
PAST REFINANCES: Homeowners who previously took cash out during a refinance are eligible to participate in the program.
MULTIPLE HOMES: People who own more than one property or co-signed for another home are eligible to apply for the programs, though the assistance is only available on principal residences.
MORTGAGE REDUCTION: The Principal Reduction program can reduce loan principal by up to $100,000.
RELOCATION INCENTIVE: The Transition Assistance Program offers up to $5,000 to homeowners who complete a short sale or deed-in-lieu of foreclosure.
Keep Your Home California was created to prevent avoidable foreclosures while a homeowner gets back on their feet after a layoff. It provides a temporary fix to what we all hope is a temporary problem. The federally funded program has helped 8,000 homeowners since its launch in February.
To qualify, a homeowner’s bank or servicer must agree to participate in the programs, and the homeowner must meet eligibility requirements. But the programs are voluntary for the banks – even if a homeowner meets the criteria, the bank can still elect not to work with the homeowner.
PROGRAM REQUIREMENTS
UNEMPLOYMENT MORTGAGE ASSISTANCE: With this program, homeowners who have lost their jobs but want to keep their homes can receive up to $3,000 per month for nine months to make their house payments.
To qualify, homeowners must live in the property as their principal residence and they must qualify as low- to moderate-income households for the county in which they reside.
They must be eligible to receive unemployment benefits. Homeowners who resigned from their jobs are not eligible.
Homeowners must be behind on their mortgage payments or in danger of getting behind because of their hardship.
Loans in foreclosure or active bankruptcy are not eligible.
MORTGAGE REINSTATEMENT ASSISTANCE: This program aids homeowners who have fallen behind on their first trust deed mortgage payments and need help to catch up. Benefits have been increased to $20,000 from $15,000, with payment in one lump sum to cover principal, interest, taxes, insurance and homeowner’s association.
The no-interest, non-recourse assistance is considered a loan and must be repaid if the home is sold or refinanced with cash out within three years. After three years, the loan is forgiven.
To qualify, homeowners must live in the property as their principal residence and they must qualify as low- to moderate-income households.
They must have a valid hardship, and the homeowners also must be able to afford the current mortgage payment. Homeowners must be at least two payments behind on their mortgage. Loans in foreclosure or active bankruptcy are not eligible.
PRINCIPAL REDUCTION: This program provides matching funds up to a total of $100,000 over three years to reduce the first mortgage on a home.
The no-interest, non-recourse assistance is considered a loan and must be repaid if the home is sold or refinanced with cash out within three years. After three years, the loan is forgiven.
To qualify, homeowners must live in the property as their principal residence and they must qualify as low- to moderate-income households.
Homeowners must be behind on their mortgage payments or in danger of delinquency. Loans in foreclosure are eligible, but active bankruptcies are not eligible.
They must have a valid hardship, and the homeowners also must be able to afford the modified mortgage payment according to specific lender guidelines.
TRANSITION ASSISTANCE: This program provides up to $5,000 relocation incentive for a homeowner who completes a short sale or deed-in-lieu.
The homeowner must live in and maintain the property until the process is complete, and they must qualify as low- to moderate-income households.
They must have a valid hardship and be behind on their mortgage payments or in danger of delinquency. Homes in active foreclosure are eligible as well. Homeowners in bankruptcy are not eligible.
Want to know if you qualify for any of these programs? Call us today at 951-778-9700, or contact the California Housing Finance Agency at 888-954-5337.
(Brian Bean and Timothy Hardin are Realtors and Ambassadors for Helping A Million Homeowners, a nationwide organization that is committed to helping alleviate the financial stress that so many homeowners face today. They can be reached directly at Brian@DreamBigRealEstate.com.)
Brian Bean and Timothy Hardin
Real Estate Professionals
www.DreamBigRealEstate.com
www.IEShortSalePros.com
www.HelpingAMillionHomeowners.com
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