The folks at Keep Your Home California, the state’s free mortgage-assistance program, is reminding homeowners to apply for help before the money runs out.
The nearly $2 billion program created in 2011 from the U.S. Treasury’s Hardest Hit Fund to help homeowners avoid foreclosure is on track to use all the money before the Dec. 31, 2017 deadline. That means the program could stop accepting applications by the end of next year.
“California’s economy and housing market have improved and quite a few families and homeowners are back on track financially,” said Tia Boatman Patterson, executive director of the California Housing Finance Agency which oversees the program. “But there are still many homeowners who need some help and our mission is to provide them with the assistance.”
Keep Your Home California has provided more than $33 million a month to homeowners in the last year. Participants can qualify for help under four different programs including principal reduction, unemployment assistance, mortgage reinstatement assistance and a transition assistance program for those who cannot keep their homes. A pilot program to help seniors with a reverse mortgage is also available.
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The principal reduction program offers the maximum amount of help for homeowners – up to $100,000 off the principal mortgage balance. Homeowners have received an average of $75,000 in principal reductions and a 14 percent drop in monthly payments.
Nearly $34 million in principal mortgage reduction was issued statewide – $3.25 million in Fresno County – during the second quarter of this year. Principal reductions make up 50 percent of the program’s current transactions. Program officials are encouraging homeowners, especially those with unaffordable or underwater mortgages, to apply for help now.
For more information, visit keepyourhomecalifornia.org or call 888-954-5337.
Keep Your Home California funds issued
No. of homeowners served
Total amount issued
Total for Principal Reduction Prog
Source: Keep Your Home California