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California Association of REALTORS® Launches Mortgage Protection Program for First-time Home Buyers

Site with mortgage loan modification information also available

Wednesday, April 1, 2009

The California Association of REALTORS® launched a new program on April 2 designed to provide peace of mind to first-time buyers who are hesitant to enter the housing market due to concerns about potential job loss, and subsequently being unable to meet their monthly mortgage obligations.

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.'s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

To qualify for the Mortgage Protection Program, applicants must:
* Be a first-time home buyer – someone who has not owned a home in the last three years
* Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
* Use a California REALTOR® in the transaction
* Purchase the property in California
* Be a W-2 employee (cannot be self-employed or military personnel)

"We are pleased that the California Association of REALTORS®  is taking a pro-active approach to consumers' concerns about the housing market," said Julia Truesdale Keady, president of the Silicon Valley Association of REALTORS®. "Our members applaud C.A.R. for addressing the concerns of first-time home buyers and their ability to make their mortgage payments should they loose their jobs."

Keady is encouraging all Realtors to take full advantage of this new program by sharing information about the C.A.R.H.A.F. Mortgage Protection Program with their clients. There is no cost to for home buyers or Realtors to participate in the new program.

First-time home buyers must receive an application for the H.A.F. Mortgage Protection Program from their Realtor. For applications and other information on this exciting new program, go to www.car.org/aboutus/hafmainpage/

Concerned about homeowners receiving the right information, C.A.R. has also created consumer information sheets detailing the various mortgage modification programs available through the larger lenders and government entities. The consumer sheets contain information such as eligibility requirements, who to contact to apply, costs associated with the program, and other vital data. There is also an easy-to-use reference chart about available programs.
Homeowners may ask a Realtor for the information, or visit:
http://www.car.org/legal/mortgage-workout-programs/


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

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