Archive for the ‘Keep Your Home’ Category

“Keep Your Home California” Program To Help More Homeowners

Thursday, November 10th, 2011

Keep Your Home California, a state program that was designed to help homeowners avoid foreclosure, has broadened criteria and may now help you keep your home. The program, which debuted just over a year ago with four ways to help distressed homeowners, will now offer mortgage relief to more state residents.

The original program offered help via payment subsidies, mortgage reinstatements, negative equity reductions and financial assistance to those who must move (cannot afford to stay). Last Spring the program announced it was expanding to include home equity lines of credit, or for those took equity out from a refinance. The program has helped close to 8,000 moderate and low income homeowners who were heading toward loan default.

The new changes include the following:

Allowing cash-out borrowers to be assisted under all four aspects of the program (this part of the program was proposed last Spring)

Allowing multiple property borrowers to apply to the program. Those with second homes or those who are on title to another home will not be excluded from the program any longer.

Extending the mortgage aid for unemployed borrowers to nine months instead of the original six. As defined under the original guidelines, borrowers receiving unemployment benefits are eligible to receive up to $3000 in aid per month.

Increased reinstatement amount. Under the original program, if you missed one or more mortgage payment you could be eligible to obtain up to $15,000 or 50% of the delinquent amount, whichever is less, in order to reinstate your mortgage and avoid foreclosure. That amount has now been increased to $20,000.

There are still restrictions and qualifications to participate in this program. For more information and to find out if you qualify, visit http://www.keepyourhomecalifornia.org/  or call (888) 954-5337.

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CA Foreclosure Relief Programs Expand Eligibility

Saturday, April 9th, 2011

If you are a home owner in California and are having difficulty with making your mortgage payments, you may be in luck. California recently announced an expansion to three of its four Keep Your Home California programs.

Originally the Keep Your Home California programs did not apply to home equity accounts, but that is no longer the case. Those with equity lines of credit or who took equity out from a refinance can now qualify for the Unemployment Mortgage Assistance Program, Mortgage Reinstatement Assistance and Transition Assistance Programs. Mortgages originated after January 1, 2009 will now qualify under these programs.

The Unemployment Mortgage Assistance Program helps unemployed homeowners who are in imminent danger of defaulting by offering up to $3000 a month to cover the mortgage.

The Mortgage Reinstatement Assistance Program assists homeowners who have a documented financial hardship by giving up to $15,000 to help with mortgage payments.

The Transition Assistance Program offers funds to help homeowners with relocation where they cannot pay their mortgage and are in the process of a short sale or deed in lieu of foreclosure.

So far the California programs are in the process of helping over 2,000 homeowners, and these new program expansions will undoubtedly help many more people seek assistance under the Keep Your Home California general plan. Many servicers are participating in these programs, either completely or in part. To learn the requirements and find out if you are eligible please visit the website at http://www.keepyourhomecalifornia.org/ or call 888-954-KEEP (5337).

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Free Distressed Homeowner Workshop Thursday

Tuesday, October 19th, 2010

If you are underwater with your mortgage or are facing circumstances that may effect your ability to pay in the future, there is a workshop this Thursday that is just for you. This free workshop will be held at the San Diego Convention Center from 1 p.m to 7:30 p.m. There will be numerous lenders and loan servicers present, as well as HUD counsellors.

This program will allow you to register and meet in person with a servicer from your loan provider, ask questions and discuss available options for your situation. The program is sponsored by the Obama administration’s Making Home Affordable Program, the HopeNow Alliance and Neighborhood Works America.

I encourage you to go if you are in a difficult situation, as this offers you a direct line of communication with your lender and counsellors, instead of spending hours on the phone trying to work something out. Make sure to bring your financial records and proof of hardship along with you.

For more information visit MakingHomeAffordable.gov, HopeNow.com or nw.org.

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California May Help YOU Keep Your Home

Tuesday, September 14th, 2010

If you are a Californian and you are having difficulties with your mortgage, you may be in luck. Starting November 1 a new program entitled Keep Your Home will go into effect. The program offers principal reductions (essentially loan modifications), money for “catching up” with your payments, payment subsidies and money for relocation assistance if those are not possible, but you will have to meet the criteria to be eligible for this program.

Eligibility/Types of Assistance

* Payment Subsidy: You must be in “imminent danger” of foreclosure, due to job loss, short-term financial troubles or illness. These homeowners can obtain up to $1500 or 50% of the value of their monthly mortgage payment, whichever is less, for up to six months.

* Mortgage Reinstatement: If you have missed one or more mortgage payments you may be eligible to obtain up to $15,000 or 50% of the delinquent amount, whichever is less, in order to reinstate your mortgage and avoid foreclosure. Caveat: in order for this option to work your lender MUST agree to match the monetary assistance dollar-for-dollar. That means that if you are eligible for the entire $15,000 your lender must agree to reduce your mortgage by $15,000. In essence it is similar to a modification and is a great way to prevent foreclosure, but it remains to be seen whether lenders will follow through.

* Negative Equity Reduction: If you are upside down (owe more than your home is worth in the current market) you may be eligible to receive up to $50,000 towards reduction of the principal balance on your mortgage, to bring it closer to the market comparables and avoid foreclosure. Caveat: Here the lender must also agree to match this number, meaning it will reduce the principal balance of your mortgage by the same amount.

* Must move: For those homeowners who cannot afford to remain in their homes there is still hope. If you agree to work with your lender on a short sale or deed in lieu of foreclosure, you may be eligible to receive up to $5,000 in order to help ease your move to another residence that you can afford. The money is paid through your loan service provider and is granted on a one-time only basis.

* Note that for any of the above means of assistance to apply you must meet the following criteria:

–Home must be in California

–Home is your principal place of residence (no vacation homes)

–Income restrictions must be met

–Homeowner must sign an affidavit stating that your income will allow you to make modified payments on your mortgage, that you are behind on payments or in danger of imminent default, etc.

–The property cannot be vacant, abandoned or in need of major repair

–You must not have taken cash out of your home in a cash out refinance

The state has allocated $700 million toward this program (where this money comes from in a state that is in financial trouble I haven’t a clue, but regardless the money is there). All in all it is clear that the state of California is trying to promote homeownership that is sustainable, while at the same time preventing foreclosure rates from skyrocketing and home sales prices to plummet. These ideas are a positive step in the right direction and we will see where the program goes after November 1. For more information visit the California Housing Finance Agency (CalHFA) website at http://keepyourhome.calhfa.ca.gov/. You can also call (916)373-2585.

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