Keep Your Home California Program

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. If you're not low or moderate income, well, you're just plumb out of luck to use any of this money even if it's your tax money that they're using. No worries mate, that's that redistributing the wealth thing you hear so much about. Grand, ain't it?

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.

Overall, it's probably a good thing even though it is using federal funds (our money) for the benefit of a specific category of borrower/homeowner. It's better than none at all, I guess.

Oh, the kickjer in this program? Its success is dependenmt on cooperation by the lenders to take part and voluntarily reduce their mortgages and/or interest rates. Hmmm, we've seen how well that works in the past but maybe with the kicker of $2 billion seed money the lenders can figure out a way to finesse their way into this pool of moolah and still kick the people out of their homes.

Oh, I'm just being silly. They'd never do that.

 
This post has been included in California Real Estate News
Post is included in group: Everything California
Post is included in group: Southern California Real Estate Forum
Post is included in group: The Economics of Real Estate
Post is included in group: The Lounge at Active Rain

7 Comments on Keep Your Home California Program - Low & Moderate Income level assistance.

FEB
11
2011
261,234 Points 2 Featured Posts Localism Sponsor Called Shot Master

Gene...love this; now that you have our attention why not ell us what you really think. You want to hear something funny--those income limits would qualify us [as retirees] to purchase  there. However, we do not live in CA; we are not moving there; we do not have any $$$ involved with a home in CA; & we DID not own a home in CA of which we fell into arrears--so that means that we would not qualify after all.
I'm certain that Michigan has instituted some similar programs & we do know owners who are in problems, but who do not qualify here. 
How did we allow our country to get into such a complete mess?
Waiting for the WH & Governmental entities to deal with this will be a long time coming and even then may not accomplish anything but a greater mess.
Good post--informative & worth the laughs or chuckles.
Have a great weekend.

 

Barb
7:29pm • #1
FEB
12
2011
486,374 Points 3 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Gene:

I was going to look into this program I received a message from CAR sometime back that address this program. I will need to do more research. Congratulations.
8:14am • #2
939,412 Points 94 Featured Posts Outside Blog Attended Rain Camp

Gene: I reported on this program a few months ago but at the time they were not accepting applications. Do you know whether they are actually accepting applications now?
9:31am • #3
547,229 Points 9 Featured Posts Outside Blog Called Shot Master

Gene:

Sounds like a great program.  I hope the lenders will agree to commit to the program.   I seem to remember that we bailed out a number of companies to prevent them from failing.  Why can't we help the the low to moderate income folks?
10:59am • #4
122,393 Points

Nice job..I have 2 great lo's in my market center who teach this program everyother week...it's perfect for our market..
11:08am • #5
1,348,414 Points 41 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Gene - Programs that rely on the lenders do provide assistance have been mired in the morass that is the current system.  It's unfortunate, but reality.
9:38pm • #6
FEB
15
2011
223,159 Points 35 Featured Posts

That's always the sortfall of these well-intentioned programs. Anytime you have to rely on the 'cooperation' of the lenders you can pretty much be sure it will fail.
2:48pm • #7

Login or register to leave a comment