Keep Your Home California, implemented in February 2011, was developed to minimize the housing crisis in California and help low and moderate income homeowners avoid foreclosure. In an effort to help additional homeowners, the Keep Your Home California program was recently expanded. Currently, the program has helped almost 8,000 California homeowners.
To be eligible, the California homeowner must meet certain requirements which include - the home must be their primary residence, they must owe less than $729,750, they must be delinquent on their payments, they must meet low or moderate income guidelines, and they must have adequate income to make future mortgage payments. In addition, their lender must be participating.
There are four programs under the Keep Your Home California that address different aspects of the current California housing crisis. Three of the programs help homeowners avoid foreclosure - Unemployment Mortgage Assistance, Mortgage Reinstatement Assistance, Principal Reduction. The fourth program, Transition Assistance is to help California homeowners who can no longer afford their home. Homeowners may be eligible for more than one program however, the total payout is capped at $50,000 per household which does not include matching funds provided by lenders).
Unemployment Mortgage Assistance provides up to $3,000 per month for homeowners who are collecting unemployment benefits.
Mortgage Reinstatement Assistance provides up to $20,000 to reinstate the mortgage for California Homeowners who are in the foreclosure process.
Principal Reduction provides financial assistance to help pay down the outstanding loan balance and generate lower monthly payments.
Transition Assistance provides financial assistance to help homeowner's move into more affordable housing.
California Homeowners that were denied in the past are encouraged to reapply under the new guidelines.
The $2 Billion program established for select states under the U.S. Treasury's Hardest Hit Fund, is administered by the California Housing Finance Agency. California has until 2017 to allocate the money.
Andee Allen is freelance writer, Real Estate Investor, Coach/Consultant, and California Realtor (License #01854926). You are welcome to contact Andee at firstname.lastname@example.org or on her website http://www.andeeallen.com