Great News for homeowners in California! The California Housing Finance Agency has announced a new program set to start in November. They have designated $700 million to help distressed homeowners. The program is called "Keep your Home" and offers payment subsidies, lump-sum catch-up money, principal reduction, and relocation assistance for low and moderate income homeowners with a qualifying circumstance.
Homeowners who have lost their jobs and are in danger of foreclosure can get payment subsidies of up to $1500 or 50% of their mortgage payment, whichever is less, for up to six months.
Missed payments can be made up with up to $15,000 or 50% of the past due amount, whichever is less, to reinstate the mortgage and prevent foreclosure. The mortgage holder must match the lump sum on a dollar-for-dollar basis.
Homeowners with severe negative equity can receive up to $50,000 to reduce the principle balance to market level- this must again be matched dollar-for-dollar from the lender.
Homeowners who can't afford to keep their homes can receive a one-time grant of up to $5,000 for moving assistance.
To qualify for this program, you must occupy the home as your primary residence, meet county income restrictions, sign a hardship affidavit, and have enough income to make modified payments. Homeowners are ineligible if they took a cash-out refinance.
Valerie Leivo is a Realtor with Keller Williams in Santa Rosa. You can reach her at 707-490-5527 or email greenvalerie@kw.com
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