Because California is an area highly impacted by foreclosures and negative property values, The California Housing Finance Agency announced a program to help low to moderate homeowners avoid foreclosure. It is called Keep Your Home California. The program provides:
Mortgage assistance of up to $3,000 per month for unemployed homeowners who are in imminent danger of defaulting on their home loans.
Funds to help homeowners who have fallen behind on their mortgage payments due to a temporary change in household circumstances. The program will provide up to $15,000 per household to reinstate mortgages to prevent foreclosures.
Money to reduce the principal owed on a mortgage for a home where the low or moderate income homeowner is facing a serious financial hardship and owes significantly more than the home is worth. The program requires lenders to match any assistance provided by the Keep Your Home California program.
Note that not all lenders are participating in all portions of the program. Kudos to GMAC, Guild Mortgage, California Housing Finance Agency and California Department of Veterans Affairs who are fully participating. Other lenders are participating in portions of the program.
To apply for assistance call: (888) 954-5337.