700 Million to trim underwater mortgage
California is going to use Federal money to pay down mortgages for struggling homeowners, don't miss the train on this one!
This program will be launched on a first-come first served basis, The California Housing Finance Agency will be using this money to trim individual mortgages by up to $50,000 and lenders will be asked to match that amount.
That is potentially $100K off what you currently owe. Not a bad deal.
The criteria for qualifying are still foggy and unclear. Authorities say that it is for low to monderate income families. It also says that it is expected to mean people earning under $68,000 per year, it also says that you will have to be delinquent or in imminent danger of losing your home but have adequate income to continue paying after getting help.
If you have your slice of San Diego real estate and are looking to move, this may be the help you need.
This doesn't apply, however if you did a cash-out refinance or wants to do it on an investment property. Great news though, if you refinanced to lower your interest rate, you do qualify. This was still unclear until yesterday.
It doesn't stop there!
The government agency will also be providing up to $15,000 per household to help the homeowners catch up on late payments.
An additional $64 million will be allocated to help out the unemployed and provide $1,500 per month to pay your mortgage for 6 months.
$5,000 will be given to homeowners that can't move under any circumstance.
So there are a lot of various possibilities depending on what scenario fits for you.
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