Several different federal government funded assistance programs can help homeowners in California prevent a foreclosure and keep their home. The Keep Your Home California Program is providing billions of dollars in aid to low to moderate income borrowers across the state who need help with paying their mortgage. There are four main components to the program that each provide different forms of assistance. As with most services offered by any government agency or lender ,various conditions need to be met.
Several different local and national banks, lenders, and servers participate in the program. They include Bank of America, GMAC, Guild Mortgage, CitiMortgage, California Housing Finance Agency, Wells Fargo,California Department of Veterans Affairs, and JPMorgan Chase. Other banks and lenders may eventually participate in the Keep Your Home California Program, and you can always call the number below for the latest information.
Three of them offer several types of mortgage help, while a separate program is available that will provide transition assistance to borrowers who execute a short sale or deed in lieu transaction.
If you have a temporary hardship, the Mortgage Reinstatement Assistance Program (MRAP) component was intended to assist California homeowners who have recently fallen behind on paying their monthly mortgage payments due to a temporary financial hardship or some type of change in a households circumstance. The MRAP program will provide these homeowners with limited forms of cash grants and financial assistance in the form of emergency cash funds to reinstate their mortgage loans. The financial assistance will focus on those people who are in arrears in order to prevent potential foreclosures of their homes. These funds can provide benefits of up to $15,000 per household.
Mortgage assistance for recently unemployed homeowners who are facing a foreclosure or who are in imminent danger of defaulting on their home loans is available. This service is known as Unemployment Mortgage Assistance Program (UMA), and it was created to assist homeowners in California who have experienced involuntary job loss with a resulting loss in income.
The UMA program will provide temporary financial assistance in the form of a mortgage payment subsidy or cash grants of varying size and terms to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems or the loss of a job. These emergency cash grants and funds from the Keep Your Home California Program can provide up to six months of benefits to qualified homeowners with a monthly benefit of up to $3,000 or 100% of the existing total monthly mortgage, whichever amount is less.
If it is impossible to stop a foreclosure for someone, then they may benefit from the Transition Assistance Program (TAP). This particular program was intended to help those California families who will be losing their home, and it will really provide community stabilization by providing homeowners with relocation and other forms of assistance when it is determined that they can no longer afford to stay in their home. The TAP program will be used in conjunction with a lender or servicer-approved deed-in-lieu of foreclosure or short sale program in order to help those particular homeowners transition into stable and affordable housing. Homeowners who enter into this program will be responsible to occupy and maintain the current home they live in, while the bank works through the process, until the home is sold or returned to the bank or servicer as negotiated. Funds will be available for this particular component on a one-time only basis.
The Keep Your Home California program may be able to offer money to reduce the principal balance owed on a mortgage for a home where the homeowner is facing a serious financial hardship and in which the homeowner owes significantly more than the home is worth on their loan. The Principal Reduction Program (PRP) is intended to assist homeowners across the state who are at risk of default because of an economic hardship and/or loss of income that is also coupled with a severe decline in the home’s value. The PRP program will provide capital to homeowners to help them reduce outstanding principal balances of qualifying homeowners with negative equity. The principal balance on their home loan will be reduced in an effort to promote sustainable homeownership and to also prevent avoidable foreclosures. The principal reduction program will most likely lead to some type of loan modification or other type of arrangement between the borrower and the homeowner.
Billions of federal government dollars will be provided to California. Homeowners throughout the state can apply or get more information by calling (888) 954-KEEP (5337) or their mortgage servicer or bank. The Keep Your Home California may provide the assistance you need to help you deal with a foreclosure, or help you get off to a fresh start if it is too late.
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