A $2 billion state program was created to assist struggling homeowners maintain their mortgage payments and avoid foreclosure. The Keep Your Home California program offers four different areas of assistance for homeowners experiencing hardships.
The Unemployment Mortgage Assistance Program provides up to $3,000 a month to qualifying homeowners who have experiences and involuntary job loss and are receiving state unemployment benefits. The Mortgage Reinstatement Assistance Program provides a onetime payment of up to $20,000 to eligible homeowners that have fallen behind on their payments and need help reinstating their first mortgage loan. Other services include up to $50,000 assistance for reducing principal amount owed on a home with severely decreased home value, through the Principal Reduction Program, and up to $5,000 assistance for homeowners moving into a new residence after a short sale or foreclosure, through the Transition Assistance Program.
The Keep Your Home California program has expanded its reach to many that may have been previously ineligible for benefits or assistance under the program. Cash out mortgage refinanced mortgage holders may not qualify for assistance under any of the four programs. Homeowners holding mortgages on multiple properties may not seek assistance for those additional, non-primary residence properties. The extension will also allow for unemployed borrowers to obtain help through the Unemployment Mortgage Assistance Program for up to nine months rather than limit the funds to six months.