New California Mortgage Assistance Program

New California Mortgage Assistance Program

New programs have been announced, that will help homeowners that are struggling to make ends meet and are at risk of foreclosure. Especially those in hard hit areas such as California.

One of the California mortgage assistance programs, known as the Keep Your Home Program, was recently announced, and was developed to help homeowners that are unemployed or have experienced a dramatic change in financial circumstances due to disability, death, etc..., and are in imminent danger of foreclosure. California received more government money than any other state receiving assistance funds, and will be allocating a total of $3 Billion to 2 such foreclosure prevention programs.

The newest, and not yet launched program, will literally lend money to California homeowners facing foreclosure.

Beginning November 1st, 2010, eligible California homeowners will be able to apply for this program, which would allow them to borrow up to $50,000.00 to help make their mortgage payments. This "loan" will be offered at 0% interest and with a deferred payment.

As of now, qualified California mortgage assistance applicants would meet the following guidelines:

• Mortgage payments are 3 months delinquent or less.
• Prior positive payment history.
• 1) Show a substantial reduction in income due to involuntary unemployment, underemployment, a medical condition, or due to a change in household circumstances such as death or disability OR 2) Have received or will soon be receiving an increase in payment/interest rate, which will make the mortgage payment unaffordable, and the borrowers home has severely declined in value.
• Low to moderate income level.
• Loan is against the homeowners principal residence.
• Borrower must not own a 2nd home.
• Demonstrate the likelihood of being able to resume mortgage payments within 2 years.
• Loan was made for the purchase of the home, and was not a refinance.

If you are a California resident, at risk of foreclosure, and believe that you may qualify for this mortgage assistance program, I would suggest that you get your paperwork in on the first day, as the line of applicants is sure to be long.