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By Mc Griffin Campbell | Broker in Los Angeles, CA
  • Facing Foreclosures? There's help!

    Posted Under: Foreclosure in San Anselmo  |  September 8, 2010 6:03 PM  |  367 views  |  No comments

    Facing Foreclosure: Homeowners: Struggling to make mortgage payments?  Do you owe more on your home than what your home is worth?


    There is help!   These are new programs to help jump-start and tackle the foreclosure crisis; Federal and the State of California.


    First, homeowners need to know: There is assistance from several sources for: 


    1.    Homeowner struggling to make your mortgage payment

    2.    Homeowner who owe more on their home than what their home is worth:


    There’s help!

    1.    Federal Housing Administration. http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-189

    2.    The California Housing Finance Agency: “Keep Your Home” http://www.calhfa.ca.gov/



    Federal Housing Administration

    While lenders have generally chosen to foreclose on borrowers, there appears to be help on the horizon. According to San Francisco Chronicles, Alan Zibel, September, 7, 2010, report: The Obama administration is working to provide help to homeowners who owe more on their homes than their homes are worth.   


    This week, the Federal Housing Administration will permit lenders to give borrowers refinanced loans backed by the government.  The lenders will be required to forgive at least 10% of the original mortgage amount.  Investors who have control over the mortgages, as part of their large portfolios will select which borrowers are invited to participate.


    To qualify, borrowers must be up to date on their mortgages, though many people who have already received loan modifications through other programs are still eligible.  The plan is limited to loans in which homeowners owe at least 15% more than their home’s current value.


    California Housing Finance Agency,  CalHFA: http://www.calhfa.ca.gov/homebuyer/


    (This program is expected to roll out by November 1, 2010):  Reference: Marcie Geffner: former senior editor of California Real Estate magazine, Home Edition, September 2010.


    This program is called “Keep Your Home,” offers payment subsidies lump sum catch up money, principal reduction and relocation assistance for low and moderate income homeowners who have experienced a financial hardship, major change in life circumstance, unaffordable increase in their mortgage payment, or severe decline in their home’s value.


    Case in Point:

    1. If a homeowner has lost their job and are in imminent danger of foreclosure due to short term financial problems can obtain a payment subsidy of up to $1,500 or 50% of their monthly mortgage payment whichever is less, for as long as 6 months.


    2. If a homeowner missed one or more payment can receive up to $15,000 or 50% of the past due amount, whichever is less, to reinstate the mortgage and prevent a foreclosure.


    3.Homeowners who have severe negative equity can receive up to $50,000 to reduce the principal balance on their mortgage to a market level to prevent an avoidable foreclosure and promote sustainable homeownership.


    4.Homeowner who can’t afford to keep their home and are willing to cooperate with a participating lender’s short sale or deed-in –lieu of foreclosure program can receive a one time grant of up to $5,000, paid through the loan servicer, to transition to a more affordable residence


    Again, there is help for the homeowner.  It is up to you to check with these agencies and be informed.  For more information for California Homeowners: www.keepyourhomecalifornia.com or 916-373-2585

    Any further questions, call me.


    MC Campbell, DRE#:01819507

    Broker Associate, Coldwell Banker

    9000 Sunset Blvd. #100

    Los Angeles CA. 90069





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