Good news for homeowners who need assistance: the California Housing Finance Agency recently announced a new program to help homeowners keep their homes. Â TheÂ "Keep Your Home"
Â program offers assistance to homeowners who have experienced a financial hardship, major life change, major increase in mortgage payments, or major decline in home value.
What kind of assistance does the program offer?
- If you've lost your job and are nearing foreclosure, you can get a payment subsidy up to $1,500 or 50% of the monthly mortgage payment - whichever is less, for up to 6 months.
- If you've missed 1+ payments, you can receive up to $15,000 or 50% of the past due amount - whichever is less, to reinstate the mortgage and stop the foreclosure. Â This "catch-up" money must be matched by either the borrower, lender, loan servicer, and/or mortgage insurer.
- If you have serious negative equity, you can get up to $50,000 to reduce the principal balance to prevent a foreclosure. Â The lender, in this case, must agree to reduce the principal balance by the same amount.
- If you can't afford to keep your home and are willing to do a short sale or deed-in-lieu of foreclosure, you can receive a one-time sum of $5,000 in relocation assistance.
The program is expected to be implemented by Nov. 1st, and hopefully will be of great assistance to homeowners who are experiencing hardship. Â Read more about the program atÂ www.keepyourhomecalifornia.com
Caroline Choi Realtor
Caroline Sells The City