You may have wondered, where’s our share of the federal money to help bail out the housing crisis in this nation. Well, help is on the way in the form of nearly $2B in federal funds to help California homeowners in crisis. Here is the information from the California Mortgage Assistance Corporation’s website:
Helping You Keep Your Home
The U.S. Treasury Department has approved CalHFA's plan to use nearly $2 billion in federal funding to help California families struggling to pay their mortgages.
The Keep Your Home California programs are focused on assisting low and moderate income families stay in their homes, when possible, and leveraging additional contributions from mortgage servicers.
Primary objectives for the Keep Your Home California programs include:
- Preserving homeownership for low and moderate income homeowners in California by reducing the number of delinquencies and preventing avoidable foreclosures
- Assisting in the stabilization of California communities
Each of the Keep Your Home California programs is designed to address one or more aspects of the current housing crisis by doing the following:
- Helping low and moderate income homeowners retain their homes if they either have suffered a financial hardship such as unemployment, have experienced a change in household circumstance such as death, illness or disability, or are subject to a recent or upcoming increase in their monthly mortgage payment and are at risk of default because of this economic hardship when coupled with a severe decline in their home's value.
- Creating a simple, effective way to get federal funds to assist low and moderate income homeowners who meet one or all of the objective criteria described above. Speed of delivery will be balanced with fulfillment of the specific program's mission and purpose.
- Creating programs that have an immediate, direct economic and social impact on low and moderate income homeowners and their neighborhoods.
Programs
The following are brief summaries of the programs available under Keep Your Home California. To see full program descriptions, click on the program name below. See a list of participating servicers and which programs they are currently offering.
Unemployment Mortgage Assistance Program (UMA) – Intended to assist homeowners who have experienced involuntary job loss. UMA will provide temporary financial assistance in the form of a mortgage payment subsidy of varying size and term to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems. These funds can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100% of the existing total monthly mortgage, whichever is less.
Mortgage Reinstatement Assistance Program (MRAP) – Intended to assist homeowners who have fallen behind on their mortgage payments due to a temporary change in a household circumstance. MRAP will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds can provide benefits of up to $15,000 per household.
Principal Reduction Program (PRP) – Intended to assist homeowners at risk of default because of an economic hardship coupled with a severe decline in the home’s value. PRP will provide capital to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced in an effort to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program will most likely be a prelude to loan modification. (Servicers that contribute through matching funds increase the benefit for homeowners).
Transition Assistance Program (TAP) – Intended to promote community stabilization by providing homeowners with relocation assistance when it is determined that they can no longer afford their home. TAP will be used in conjunction with a servicer-approved short sale or deed-in-lieu of foreclosure program in order to help homeowners transition into stable and affordable housing. Homeowners will be responsible to occupy and maintain the property until the home is sold or returned to the servicer as negotiated. Funds will be available on a one-time only basis.
Program Eligibility
Minimum Financial Requirements
The Keep Your Home California program is designed to help low and moderate income homeowners retain their homes if they have suffered a financial hardship. In order to apply, your financial situation must meet these requirements.
- Are You Low or Moderate Income? Check this Income Table and match the county you live in with your household income. Your gross family income should be less than or equal to the amount shown.
- Have You Suffered a Financial Hardship? To be eligible, you must be experiencing a financial hardship that puts you at risk of default due to changes in household circumstance such as death, illness, disability, unemployment or loss of income.
The form below will help you determine if your property and mortgage meet the basic eligibility guidelines of the program.
You can view the Program Details for a complete list of all Keep Your Home California programs and their guidelines. See a list of participating servicers and which programs they are currently offering.
Counseling
Counseling is a critical tool for struggling homeowners. A counselor can work with you to assess your eligibility for one or more of the Keep Your Home California programs. The counselor may also help you determine if you qualify for participation in other modification programs and recommend a course of action based on your unique facts and circumstances.
Below is a list of HUD-certified counselors participating in the Keep Your Home California program. This list is divided into three regions of the state, choose the region that best fits your location.
Resources
Events & Services
There are many resources available to California homeowners who are struggling to make their mortgage payments and avoid foreclosure.
Throughout the state, housing organizations, counselors and nonprofit agencies are sponsoring homeownership events where borrowers homeowners can learn about foreclosure prevention options and get immediate help connecting with loan servicer representatives and local housing counselors. These events are also excellent opportunities to improve budgeting and money management skills. Check the list below for an event in your area:
It should be noted that CalHFA MAC is not a sponsor of, nor does it specifically endorse any of the events listed below. They are listed for informational purposes only. It is always recommended that you make sure you are doing business with a reputable organization, especially when your financial information is involved.
Resources
Events & Services
There are many resources available to California homeowners who are struggling to make their mortgage payments and avoid foreclosure.
Throughout the state, housing organizations, counselors and nonprofit agencies are sponsoring homeownership events where borrowers homeowners can learn about foreclosure prevention options and get immediate help connecting with loan servicer representatives and local housing counselors. These events are also excellent opportunities to improve budgeting and money management skills. Check the list below for an event in your area:
It should be noted that CalHFA MAC is not a sponsor of, nor does it specifically endorse any of the events listed below. They are listed for informational purposes only. It is always recommended that you make sure you are doing business with a reputable organization, especially when your financial information is involved.
Frequently Asked Questions (FAQ's)
General Information & Funding
What is the Keep Your Home California program?
Is funding for the Keep Your Home California program limited?
What types of foreclosure prevention programs were designed?
What is CalHFA MAC?
Eligibility
Who is eligible for the programs?
What types of property are eligible for the programs?
Do I need to be behind on my mortgage payments to be eligible for the Keep Your Home California programs?
Do I need to be a CalHFA borrower to qualify?
How do I know if I am eligible for one of the Keep Your Home California programs?
What type of hardships will be considered?
If I qualify for this assistance, do I have to pay it back?
Do I need to pay a fee to take part in the Keep Your Home California programs?
Can I apply for more than one program?
What will happen if I use up all the funds given to me and I still don’t have a job?
I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for a Keep Your Home California program?
I am a renter living in a home that is in default and is at risk of foreclosure. Am I eligible for assistance through Keep Your Home California?
I have a mortgage on a duplex. I live in one unit and rent the other unit. Could I still be eligible for a Keep Your Home California program?
What if I have applied for a different modification and it was approved but I turned it down? Can I apply for any assistance?
The Process
How do I know if my servicer is participating in Keep Your Home California? Are all servicers required to participate?
How can I apply for one of the Keep Your Home California programs?
What documents will I need to provide if I am accepted into a program?
How will the funds be disbursed to me?
Counseling & Resources
My loan is scheduled for foreclosure soon and I do not qualify for Keep Your Home California. What should I do?
I am struggling to make my mortgage payments, but I am having difficulty getting assistance from my servicer. What should I do?
Where can I find additional information?
General Information & Funding
Q: What is the Keep Your Home California program?
A: Keep Your Home California is a federally funded program to help California homeowners struggling to pay their mortgages. California has received nearly $2 billion in federal funding and is working with housing counselors, servicers and housing advocates to provide assistance that will help prevent avoidable foreclosures and keep Californians in their homes. Full details on the program are available at www.KeepYourHomeCalifornia.org.
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Q: Is funding for the Keep Your Home California program limited?
A: Yes, funding for this program in California is limited to about $2 billion, though we will be requiring servicers to “match” every dollar on certain programs, resulting in a greater impact for California families. There is a benefit cap of $50,000 per qualifying household; with matching servicer funds, the maximum per household could include up to $100,000 in assistance.
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Q: What types of foreclosure prevention programs were designed?
A: Keep Your Home California contains four programs to assist California homeowners. Three of these programs are designed to help qualifying homeowners remain in their homes and avoid foreclosure:
- Unemployment Mortgage Assistance Program
- Mortgage Reinstatement Assistance Program
- Principal Reduction Program
The fourth program, the Transition Assistance Program, provides financial assistance for homeowners who can no longer afford their home and need help transitioning to other housing. The Transition Assistance Program may only be used in conjunction with a short sale or deed-in-lieu of foreclosure transaction.
For detailed descriptions of each of these foreclosure prevention programs, visit the website at www.KeepYourHomeCalifornia.org/programs.htm.
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Q: What is CalHFA MAC?
A: CalHFA MAC is CalHFA Mortgage Assistance Corporation, a nonprofit organization whose Board of Directors and Officers are employees of CalHFA and receive no additional compensation for performing these duties. CalHFA MAC was created specifically to receive and disburse federal funding to qualifying California homeowners; these funds cannot be commingled with or used for any other state budget purpose.
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Eligibility
Q: Who is eligible for the programs?
A:General homeowner eligibility requirements for these programs include, but not limited to, the following:
- Own and occupy home as their primary residence
- Current unpaid principal balance of first mortgage cannot exceed $729,750
- Meet low and moderate area income limits
- Complete and sign a Hardship Affidavit to document reason for hardship
- Mortgage loan is delinquent or in imminent default
- Adequate income to sustain modified mortgage payments according to participating servicer guidelines
For a more detailed discussion of eligibility requirements, visit http://www.keepyourhomecalifornia.org/qualify.aspx.
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Q: What types of property are eligible for the programs?
A: General property eligibility requirements for these programs include the following:
- Located in California
- Owner occupied; principal residence
- Mortgage is a first lien loan
- Property must not be abandoned, vacant, or condemned
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Q: Do I need to be behind on my mortgage payments to be eligible for the Keep Your Home California programs?
A: No. California homeowners who are struggling to remain current on their mortgage payments are eligible if they reasonably believe they are very likely to default on their mortgage soon (often referred to by loan servicers as "imminent default"). For example, if a homeowner has had (or will have) a significant increase in the mortgage payment (due to a payment adjustment or rate adjustment upwards), or has suffered a financial hardship such as unemployment that will make the mortgage unaffordable.
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Q: Do I need to be a CalHFA borrower to qualify?
A: No. Any California homeowner who meets the eligibility requirements can qualify. Your servicer, however, must sign an agreement to participate in the program to ensure that funds are properly applied and reported.
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Q: How do I know if I am eligible for one of the Keep Your Home California programs?
A: To ascertain your general eligibility, visit the Eligibility Calculator at http://www.keepyourhomecalifornia.org/qualify.aspx. You can also speak with a Keep Your Home California counselor who will help determine your eligibility by calling 888.954.KEEP(5337).
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Q: What type of hardships will be considered?
A: If you have suffered a severe reduction in your household income or are facing increased expenses beyond your control, these hardships will be taken into consideration.
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Q: If I qualify for this assistance, do I have to pay it back?
A: This assistance will be provided to eligible homeowners as a conditional lien. You are not required to make payments; however, if you sell your home or fail to maintain your loan in good standing for three years from receiving the assistance, the lien becomes a loan and you may be required to pay it back from the proceeds of the sale of your home.
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Q: Do I need to pay a fee to take part in the Keep Your Home California programs?
A: No. You will never be asked to pay a fee to participate in the Keep Your Home California programs. In fact, you should beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
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Q: Can I apply for more than one program?
A: Once you have qualified for one of the programs, you may be eligible to apply for an additional program, depending on your particular financial situation; however, there is an overall assistance cap of $50,000 per household (not including matching funds provided by lenders).
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Q: What will happen if I use up all the funds given to me and I still don’t have a job?
A: You will then be eligible for free HUD foreclosure prevention counseling which could help you qualify for other programs. Some of these may include transition to other foreclosure alternatives, such as deed-in-lieu of foreclosure or short sale. Details on this will be covered during your initial telephone counseling session with the Keep Your Home California staff.
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Q: I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for a Keep Your Home California program?
A: No. If you own a house that you use as a vacation home or that is not your primary residence, the home is not eligible for assistance from any of the Keep Your Home California programs.
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Q: I am a renter living in a home that is in default and is at risk of foreclosure. Am I eligible for assistance through Keep Your Home California?
A: No. The purpose of the Keep Your Home California funds is foreclosure avoidance. Eligible properties must be owner-occupied.
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Q: I have a mortgage on a duplex. I live in one unit and rent the other unit. Could I still be eligible for a Keep Your Home California program?
A: Yes. Mortgages on two, three and four-unit properties can be eligible as long as you live in one unit as your primary residence.
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Q: What if I have applied for a different modification and it was approved but I turned it down? Can I apply for any assistance?
A: As long as you currently meet the eligibility criteria, you may still qualify for assistance through Keep Your Home California.
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The Process
Q: How do I know if my servicer is participating in Keep Your Home California? Are all servicers required to participate?
A: Participation in Keep Your Home California is strictly voluntary, although the programs were designed specifically to provide servicers with additional foreclosure alternative tools, including substantial matching dollar elements to invite participation in the Principal Reduction Program. To find out if your servicer is participating, either call your servicer directly or call Keep Your Home California at 888.954.KEEP(5337).
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Q: How can I apply for one of the Keep Your Home California programs?
A: First, you can ascertain your general eligibility by visiting the Eligibility Calculator at http://www.keepyourhomecalifornia.org/qualify.aspx. You can also call Keep Your Home California at 888.954.KEEP(5337) or contact your servicer directly. If your servicer is participating in the program, they can help you with application details.
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Q: What documents will I need to provide if I am accepted into a program?
A: You will be asked to submit standard loan modification documents to determine eligibility for these programs. Items that establish income and occupancy, such as pay stubs and bank statements, as well as a hardship affidavit, 3rd party disclosure (needed to allow us to share information with your servicer), and if applicable, proof of unemployment, a copy of an investor approved short sale or deed-in-lieu documentation will be required.
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Q: How will the funds be disbursed to me?
A: The funds will not be disbursed to you directly. Funds for all programs will be disbursed to your servicer and will be directly applied to your mortgage.
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Counseling & Resources
Q: My loan is scheduled for foreclosure soon and I do not qualify for Keep Your Home California. What should I do?
A: Contact your servicer immediately and ask to be considered for the federal government’s Making Home Affordable Program or another foreclosure prevention program. Servicers participating in the federal program may not be allowed to proceed with a foreclosure sale until you have been evaluated for it, and, if eligible, offer you a trial modification.
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Q: I am struggling to make my mortgage payments, but I am having difficulty getting assistance from my servicer. What should I do?
A: If you are experiencing difficulty getting foreclosure prevention assistance from your servicer, we recommend that you contact a HUD-certified housing counselor and request their assistance.
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Q: Where can I find additional information?
A: The www.KeepYourHomeCalifornia.org web site will be updated frequently. You can also register for enews announcements by visiting the web site and clicking on “email updates” or you can follow us on Twitter (www.twitter.com/calhfa). If you would prefer to call, the Keep Your Home California direct line is 888.954.KEEP(5337).
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