Keep Your Home California Debuts New Interactive Website

See if this new program can help you save your home.  Call me with questions and other possible options!

Keep Your Home California has launched an easier-to-use website at www.KeepYourHomeCalifornia.org, allowing homeowners to answer questions online and determine if they are a good candidate for the free mortgage assistance program, and, if so, which program works best for them.

 

The federally funded program helps homeowners who have suffered a financial hardship, such as a job loss, a reduction in pay, divorce, or significant health care expenses, to make their mortgage payments.

 

The program, administered by the California Housing Finance Agency, can only help homeowners if they meet income requirements and their mortgage servicers participate in the program. More than 100 servicers now participate in the Keep Your Home California, so most mortgages in California are serviced by a participating Keep Your Home California servicer.

 

The website also includes lists of participating servicers and HUD-approved housing counselors who support the program and can help homeowners in-person.

 

Homeowners can obtain full details of the four programs:

• Unemployment Mortgage Assistance Program: Homeowners can receive as much as $3,000 per month in mortgage assistance for up to nine months. Homeowners must be currently receiving or approved to receive jobless benefits from the state Employment Development Department.
• Mortgage Reinstatement Assistance Program: Homeowners can receive as much as $25,000 in assistance to help them “catch up” on their past-due mortgage payments. Homeowners must have suffered a financial hardship and be able to make their mortgage payments going forward.
• Principal Reduction Program: Homeowners can get as much as $100,000 in principal reduction. To qualify, the homeowner must have suffered a financial hardship and be able to make their mortgage payments in the future. Also, the current market value of the home must be less than what is owed on the mortgage, that is, “underwater.”
• Transition Assistance Program: Homeowners can collect up to $5,000 to cover relocation costs as part of a servicer-approved short sale or deed-in-lieu of foreclosure of their home.

Homeowners seeking more information about the program should call 888-954-KEEP (5337) between 7 a.m. and 7 p.m. weekdays and 9 a.m. to 3 p.m. Saturdays. The Keep Your Home California counseling center can answer questions in virtually any language, and there is never a charge for services through Keep Your Home California. A Spanish-language version of the website is available at www.ConservaTuCasaCalifornia.org.

California State Senate Votes to Extend Mortgage Protections

California lawmakers voted Monday to extend a law passed during the peak of the mortgage crisis that provides added protections for property owners, renters and neighbors of foreclosed properties.

The law passed in 2008 says foreclosure proceedings can’t begin until the lender has tried for 30 days to work out alternatives with the delinquent homeowner.

Lenders also must notify renters that they are beginning foreclosure proceedings. And they must give renters 60 days’ notice before evicting them from a foreclosed property.

They also are required to maintain vacant foreclosed houses or risk fines up to $1,000 a day.

The law was set to expire after this year, but senators voted to extend it another five years, through 2017.

“Unfortunately, foreclosures remain a major problem throughout the state. This legislation continues important protections for homeowners and renters that have proved tremendously helpful in this trying time,” Sen. Ellen Corbett, D-San Leandro, said in a statement after her SB708 passed on a 32-1 vote.

Senators unanimously approved a second bill, this one designed to prevent the California Housing Finance Agency from foreclosing on certain borrowers who rent out their homes.

The prohibition is limited to homeowners who are current on their mortgage payments, but rent out their homes because they owe more than their house is worth. The bill’s author, Sen. Mark DeSaulnier, D-Concord, said it is designed to help property owners who find themselves in financial trouble because of circumstances like a lost job or growing family, and is not aimed at helping housing market speculators.

Housing agency officials previously said they believed they were required to foreclose if the property was no longer the borrower’s primary residence. The agency suspended those foreclosures in October at the urging of DeSaulnier and Senate President Pro Tem Darrell Steinberg, D-Sacramento.

The agency’s board is scheduled to consider the policy at its meeting in March. DeSaulnier said his SB447 would give the agency the statutory authority to change its policy.

There was no opposition and no debate on either bill. Both bills now go to the state Assembly.

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By DON THOMPSON, Associated Press