The California Housing Finance Agency has announced the full implementation of four programs to help families remain in their homes. The programs, under the umbrella title of Keep Your Home California, are federally funded as part of the U.S. Treasury Department's Hardest Hit Fund, and are aimed at helping low and moderate income homeowners struggling to pay their mortgages. California received a total of nearly $2 billion through the Hardest Hit Fund.
All four programs are intended to help avoid foreclosure: three offer several forms of mortgage assistance, as well as a separate program that will provide transition assistance to borrowers who execute a short sale or deed in lieu transaction. All of the programs are designed specifically for low or moderate income homeowners who are either unemployed or are facing another financial hardship, have fallen behind on their mortgages and owe significantly more than the value of their homes.
Specifically, the Keep Your Home California programs provide:
The programs will be limited to homeowners who meet a number of criteria, including owning and occupying the home as their primary residence, meeting income limits, and facing a financial hardship. Homeowners who consummated a "cash-out" refinance are not eligible for Keep Your Home California programs.
To apply for the assistance, a homeowner should contact the Keep Your Home California call center toll-free at 888.954.KEEP (5337) or their mortgage servicer – the company to which the borrower sends monthly mortgage payments. Each of the mortgage assistance programs requires the participation of the mortgage servicer.
To-date, servicers participating in all four Keep Your Home California programs include GMAC, Guild Mortgage, California Housing Finance Agency and California Department of Veterans Affairs. Other servicers, including Bank of America, JPMorgan Chase Bank, Chase Home Finance LLC, CitiMortgage, EMC Corporation and Wells Fargo, are currently participating in some, but not all, programs. Full details regarding programs and servicer participation can be found at www.KeepYourHomeCalifornia.org.
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 email or call the SILVAR office at (408) 200-0100.