Mortgage aid offered to those who cashed out equity

By
Real Estate Agent with Sims & Company 01385503

Keep Your Home California

 

The California Housing Finance Agency announced this week that people who cashed out equity on their home now are eligible for three of the four “Keep Your Home California” programs.

MAKING SENSE OF THE STORY

* Keep Your Home California is a state-run program funded with $2 billion from the U.S. Treasury’s Hardest Hit Fund. It is designed to help low- and moderate-income people who are unemployed or owe more than their home is worth pay their mortgage.

* There are four individual programs that fall under Keep Your Home California. Eligible homeowners can get up to $50,000 in assistance from one or more of the four programs combined.

* Under the new rules, people who took equity out of their homes will be eligible for the unemployment mortgage assistance, mortgage reinstatement assistance, and transition assistance programs if they meet all the other program requirements. Homeowners who cashed out equity will continue to be ineligible for the principal reduction program.

* When the program first started, homeowners who had tapped the equity in their homes were ineligible for the programs. CalHFA decided to include these homeowners due to the large number of homeowners who were being turned away for assistance.

* Under the program revisions, homeowners who originated mortgages after Jan. 1, 2009 also are eligible for the same three programs. Originally, these borrowers were excluded because they also are excluded under the federal Home Affordable Modification Program, so CalHFA wanted to be consistent with HAMP.

* To qualify for any of the four programs, homeowners must fall below certain income limits, must be living in the home, and cannot own a second home, among other criteria. For additional requirements, visit “Keep Your Home California”.

 

Keep Your Home California

Reproduced with the permission from California Association of REALTORS

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If I can provide more information about real estate in Cayucos, Cambria, Morro Bay, Los Osos, San Luis Obispo, and surrounding areas, the housing market, or assist you, friends or family in a home search or sale, please phone or text me at (805) 234-4315 or email me at Sherry@SherrySim.com or visit www.SherrySim.com and www.ShortSalesAndREOs.com.

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All content ©Copyright by Sherry Sim2011. All rights reserved

 

Comments (4)

Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Sherry:  It is so great that the state of California is being pro-active in trying to help its homeowners keep their homes.  I sure hope these programs work for them.

Apr 07, 2011 04:33 PM
Tiffany Jacobs
Re/Max Regency - Manassas, VA
CDPE

Wow that is very awesome that Calfornia can assist home owners.  I can see the programs being very successful hopefully people use it.

Apr 07, 2011 04:40 PM
Sherry Peckhoon Sim
Sims & Company - Cayucos, CA
Broker/Owner, Covering the Beautiful Central Coast

Hi Karen & Tiffany

Thanks for your comments. We are hopeful too.

Apr 07, 2011 04:45 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

It is nice to see that California is helping homeowners as well. 

Apr 08, 2011 01:36 AM