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The State of California’s Housing Finance Agency (CalHFA) has started a new, federally funded, program called "Keep Your Home California". There are four parts to the program: (1) Unemployment Mortgage Assistance Program, which is available now; (2) The Mortgage Reinstatement Assistance Program; (3) The Principal Reduction Program; and (4) The Transition Assistance Program. These four programs are designed to assist low and moderate income homeowners (average annual earnings of less than $68,000 for a family of 4) retain their homes if they have suffered a financial hardship (unemployment, death, illness or disability, or are facing a recent or upcoming increase in their monthly mortgage payment and now are at risk of default because of this economic hardship and severe decline in their home's value). Only low- to moderate-income households can apply, and neither investors nor homeowners who did a "cash out" refinance are eligible. Under the UMA, qualifying low income California homeowners who are receiving unemployment benefits may qualify to have their mortgage paid for up to 6 months. Under the Principal Reduction Program (PRP), qualifying homeowners may receive up to $50,000 in principal reduction. Under the Transition Assistance Program (TAP), those who truly cannot afford to stay in their homes, may qualify for up to $5,000 in relocation assistance.
The first program, the Unemployment Mortgage Assistance Program (UMA), is available now. The UMA is designed to assist unemployed Californians pay their mortgage for up to 6 months. If you are an unemployed California homeowner, you may be eligible to receive up to $3,000 a month for up to six (6) months to help you keep your home while you find a job. The UMA provides mortgage payment assistance equal to the lesser of $3,000 per month, or 100% of the principal, interest, tax, insurance and escrowed homeowner’s association dues, if any, for up to six months.
UMA Eligibility Requirements. To be eligible for the Unemployment Mortgage Assistance Program, the homeowner / applicant must:
Mortgage Reinstatement Assistance Program (MRAP) MRAP is intended to assist homeowners who have fallen behind on their mortgage payments due to a temporary change in a household circumstance. MRAP will provide limited financial assistance in the form of funds to reinstate mortgage loans that are up to 2 months delinquent to prevent potential foreclosures. These funds can provide benefits of up to $15,000 per household, available on a one-time only basis, per household.
Eligibility Requirements. To be eligible for the Mortgage Reinstatement Assistance Program (MRAP), the homeowner / applicant must:
This program seeks to provide capital on a dollar-for-dollar matching basis with participating lenders to reduce the outstanding principal balances of qualifying properties with negative equity. The eligibility requirements are the same as for MRAP (discussed above). Unfortunately as of February 9, only the following four loan servicers are participating in the PRP Program: (1) GMAC; (2) Guild Mortgage; (3) California Housing Finance Agency; and (4) California Department of Veterans Affairs. Other loan servicers, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo are currently participating in other California Keep Your Home Programs, but not the PRP program at this time. PRP will, in cooperation with participating lenders, leverage its dollars (up to $50,000) by reducing the principal balances of underwater mortgages.
The TAP Program will provide homeowners who cannot afford to stay in their homes with relocation assistance up to $5,000. TAP will be used in conjunction with a servicer-approved short sale, or deed-in-lieu of foreclosure program, to help homeowners secure new housing (e.g., security deposit, rent, and moving expenses). Homeowners will be responsible to occupy and maintain the property until the home is sold, or returned to the loan servicer, as negotiated. It should be noted that NO funds will go directly to the homeowner. All funds will be sent to the Loan Servicer subject to the Loan Servicer/Investor’s approval of a short sale, or deed-in-lieu of foreclosure. Funds are intended to help the eligible homeowners on a one time basis secure new housing.
Eligibility Requirements. To be eligible for the TAP, the homeowner / applicant must: </b>
Tags: California Keep Your Home Program, Keep Your Home, save your home
Posted In: Real Estate Reporter
Blog Categories:Business Law Bulletin
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Disclaimer: The information presented on this web site was prepared by Melissa C. Marsh for general informational purposes only and does not constitute legal advice. The information provided in my articles and alerts should not be relied upon, or used as a substitute for professional legal advice from an attorney you retain to advise or represent you. Your use of this Internet site does not create an attorney- client relationship. Transmission of this article is not intended to create, and receipt of it does not constitute, an attorney-client relationship. All uses of the contents of this site, other than personal uses, are prohibited. You may print or email a copy of any information posted on this web site for your own personal, non-commercial, use, but you may not publish any of the articles or posts on this web site without the Express Written Permission of Melissa C. Marsh.
Located in Los Angeles, California, the Law Office of Melissa C. Marsh handles business law and corporation law matters as a lawyer for clients throughout Los Angeles including Burbank, Sherman Oaks, Studio City, Valley Village, North Hollywood, Woodland Hills, Hollywood, West LA as well as Riverside County, San Fernando, Ventura County, and Santa Clarita. Attorney Melissa C. Marsh has considerable experience handling business matters both nationally and internationally. We routinely assist our clients with incorporation, forming a California corporation, forming a California llc, partnership, annual minutes, shareholder meetings, director meetings, getting a taxpayer ID number (EIN), buying a business, selling a business, commercial lease review, employee disputes, independent contractors, construction, and personal matters such as preparing a will, living trust, power of attorney, health care directive, and more.