There is a new $2 billion federally funded effort called Keep Your Home California, focused on helping homeowners avoid foreclosure. Keep Your Home California is made up of four unique programs that have been developed to address one or more aspects of the economics of the current housing situation.
The program provides:
- Mortgage assistance of up to $3,000 per month for unemployed homeowners who are in imminent danger of defaulting on their home loans.
- Funds to help homeowners who have fallen behind on their mortgage payments due to a temporary change in a household circumstance. The program will provide up to $15,000 per household to reinstate mortgages to prevent foreclosures.
- Money to reduce the principal owed on a mortgage for a home where the homeowner is facing a serious financial hardship and owes significantly more than the home is worth. This program requires lenders to match any assistance provided for principal reduction.
- Transition assistance to help borrowers relocate to new housing situation after executing a short sale or deed-in-lieu of foreclosure program.
The programs are part of the U.S. Treasury Department’s Hardest Hit Fund, and are aimed at helping low and moderate income homeowners struggling to pay their mortgages amid the real estate crisis. The programs are limited to homeowners who meet a number of criteria, including owning and occupying the home as their primary residence, meeting income limits and facing a financial hardship. For more information visit www.KeepYourHomeCalifornia.org.
Each mortgage assistance program requires the participation of the mortgage servicer. To find out which servicers are currently participating, visit www.KeepYourHomeCalifornia.org/servicer.htm.
For more information regarding this interesting topic and the legal issues associated therewith please contact:
Harriet B. Alexson
Chair Financial Services Practice Group
Bohm, Matsen, Kegel & Aguilera, LLP
695 Town Center Drive, Suite 700
Costa Mesa, CA 92626
Tel: 714-384-6578
halexson@bmkalaw.com
info@alexsonlaw.com
www.alexsonlaw.com