$2 Billion To Fund New State Program-Keep Your Home California

New State program takes effect this year. This new program is titled “Keep Your Home California”.. The funding for this program is $2Billion and is hoped to help around 100,000 homeowners. Unfortunately there are funds set aside for the program and once the have been used up, that’s the end of it. Much like some of the first time home buyer’s tax credit and new home construction programs earlier in 2009-2010.

This programme is accessible to eligible homeowners facing deaulting on their mortgage. The programme either assists the homeowner in mortgage payments, or aids the homeowner in move costs in the case of a short sale.

The 4 elements to the programme are as follows. The 1st is extend up to $3000 a month for jobless homeowners, up to 6 months benefits. The 2nd is help those who have fallen back on payments due to impermanent circumstances with payments of up to $15,000 per household. The 3rd is afford relocation assist to those who have completed a short sale or deed in lieu of foreclosure. The 4th is provide capital to cut principal balances or struggling borrowers who have negative equity.

Each element of the programme calls for lender participation. Presently GMAC,Guild Mortgage,CHFA,and CalVet are active in all four elements. Lenders that are taking part in some of the elements are JP Morgan Chase, Citi Mortgage, and Wells Fargo. This list ought to grow in the next few weeks.

Bear in mind nobody has the cure-all to this foreclosure crisis, and this programme for sure won’t stop it. The desire is that it will have an result on the State and local levels. This programme is intended for California residences that are owner occupied. Each applicant must meet careful certain requirments.

The Requirements are as follows:

Own and live in their home as primary residence.

Not exceed $729,750 in unpaid principal balance on 1st mortgages.

Meet low and moderate income requirements. (Sacramento County is $87,700)

Complete and sign a hardship affidavit to document reasons for hardships.

Have mortgage loans that are delinquent or “in imminent default”.

Have enough income to pay modified mortgage payments according to guidelines from servicers participating in the programs.

Backing for this program comes from the US Treasury Department’s Hardest Hit Fund. The monies have been set aside to help homeowners avoid foreclosure. After receiving the finances ($2Billion), officials from California Housing Finance Agency spoke to residential district stakeholders throughout the State to create the four programs. For more info go to the program website keepyourhomecalifornia.org

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