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Keep Your Home California to stop accepting applications June 29

Keep Your Home California to stop accepting applications June 29

By Ron Trujillo / ron@calhomenews.com

Keep Your Home California, the free mortgage-assistance program that has helped about 82,000 homeowners avoid foreclosure, is entering its final weeks.

Keep Your Home California will stop accepting new applications effective 7 p.m. Friday, June 29. Homeowners dealing with a financial hardship — such as a cut in pay, job loss, death, divorce or extraordinary medical bills — are encouraged to apply for the federally funded program.

Keep Your Home California has issued almost all of the $2.38 billion awarded to the state-managed program by the U.S. Treasury Department. Keep Your Home California started in February 2011, after receiving $2 billion in funding from the Hardest Hit Fund, followed by another $383 million in April 2016.

The program has less than $25 million remaining to assist homeowners with their mortgage problems.

Boatman Patterson

“Keep Your Home California has been a very effective program, helping homeowners deal with their financial challenges and avoid foreclosure as they get back on their feet,” says Tia Boatman Patterson, Executive Director of the California Housing Finance Agency (CalHFA). CalHFA oversees Keep Your Home California. “California’s economy has improved since the program started, but there are still many homeowners who could benefit from Keep Your Home California, so we want to continue to raise awareness about the assistance as long as funds remain available.”

Keep Your Home California allows homeowners to avoid foreclosure by providing as much as $100,000 in assistance. From out-of-work homeowners able to to focus on finding a job rather than worry about their mortgage and losing their home to those who need to catch-up on their past-due mortgage payments, Keep Your Home California offers much-needed assistance to struggling homeowners.

Homeowners must have suffered a financial hardship in order to be eligible for Keep Your Home California. They must also meet county-by-county income requirements, from about $84,450 in rural communities to more than $150,000 in the Bay Area.

A homeowner’s mortgage servicer, the company that collects the monthly payment, must also participate in the program. Almos 250 servicers, including Bank of America and Wells Fargo, are enrolled in Keep Your Home California.

Keep Your Home California has four programs available to homeowners:

Unemployment Mortgage Assistance Program: Out-of-work homeowners eligible for jobless benefits from the state Employment Development Department can receive as much as $54,000 or up to 18 months in assistance, whichever comes first.

Mortgage Reinstatement Assistance Program: Homeowners can receive up to $54,000 to help them catch-up on past-due mortgage payments, as long as they are able to make their payments going forward.

Principal Reduction Program: As much as $100,000 to lower the outstanding principal balance to help ease the financial burden of a negative equity and/or an unaffordable monthly mortgage payment.

Transition Assistance Program: Homeowners can receive up to $5,000 to help with relocation costs as part of an approved deed-in-lieu of foreclosure or short sale of their home.

Feature photo by Andy Dean/Shutterstock

 

How to apply for Keep Your Home California

Homeowners interested in learning more or applying for the program, should call the counseling center at 888-954-5337 or visit www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org for Spanish speakers. The counseling center is open 7 a.m. to 7 p.m. weekdays and 9 a.m. to 3 p.m. Saturdays.

Homeowners must have suffered a hardship — such as a cut in pay, job loss, death, divorce or extraordinary medical bills — meet county-by-county income requirements and their mortgage servicer must participate in the program.

Editor’s note: Ron Trujillo provides public relation services for Keep Your Home California

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