“Keep Your Home California” Program
With all of the short sales and foreclosures in our local real estate market, it is good to share some information on other options that might be available to California residents that have had suffered some sort of financial hardship making it hard to make payments on their home.
The “Keep Your Home California” program is a CalHFA mortgage assistance program designed to help low and moderate income homeowners retain their homes if they have suffered a financial hardship. In order to apply, according to the website www.keepyourhomecalifornia.org your financial situation must meet these requirements:
- Are You Low or Moderate Income? Check this Income Table and match the county you live in with your household income. Your gross family income should be less than or equal to the amount shown.
- Have You Suffered a Financial Hardship? To be eligible, you must be experiencing a financial hardship that puts you at risk of default due to changes in household circumstance such as a death in the family, illness, disability, unemployment or loss of income.
What programs/benefits are offered through the program?
Unemployment Mortgage Assistance Program (UMA) – Intended to assist homeowners who have experienced involuntary job loss. UMA will provide temporary financial assistance in the form of a mortgage payment subsidy of varying size and term to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems. These funds can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100% of the existing total monthly mortgage, whichever is less.
Mortgage Reinstatement Assistance Program (MRAP) – 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 in arrears in order to prevent potential foreclosures. These funds can provide benefits of up to $15,000 per household.
Principal Reduction Program (PRP) – Intended to assist homeowners at risk of default because of an economic hardship coupled with a severe decline in the home’s value. PRP will provide capital to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced in an effort to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program will most likely be a prelude to loan modification. (Servicers that contribute through matching funds increase the benefit for homeowners).
Transition Assistance Program (TAP) – Intended to promote community stabilization by providing homeowners with relocation assistance when it is determined that they can no longer afford their home. TAP will be used in conjunction with a servicer-approved short sale or deed-in-lieu of foreclosure program in order to help homeowners transition into stable and affordable housing. Homeowners will be responsible to occupy and maintain the property until the home is sold or returned to the servicer as negotiated. Funds will be available on a one-time only basis.
So how do you know if your lender participates in the program? Click Here to view the list of participating lenders and/or call Toll Free 888-954-KEEP(5337) to get more information.
If you would like to talk with a local Shasta County Realtor we’d be happy to assist you with any questions that you may have regarding this program or other foreclosure alternatives. Just call Next Generation Real Estate Services at 530.222.4227. DRE license #01314114.
To search the entire Shasta MLS Database and all homes for sale click here!
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