I came across the article. I think this may have some teeth. I will do some further investigation and report back to you.
$2 billion in aid open to struggling homeowners
Monday, February 14, 2011 at 6 a.m.
- Own and occupy their homes as their primary residence.
- Not exceed $729,750 in current unpaid principal balances on first mortgages.
- Meet low- and moderate- income limits
- Complete and sign a hardship affidavit to document reasons for hardships.
- Have mortgage loans that are delinquent or "in imminent default."
- Have enough income to pay modified mortgage payments according to guidelines from servicers participating in the programs.
To apply, call 888-954-KEEP (5337) or your mortgage servicer - the company to which you send you monthly mortgage payments.
Each program requires the participation of the company or agency that holds the mortgage.
For more, visit KeepYourHomeCalifornia.org.
The four components would:
- Offer up to $3,000 a month for unemployed homeowners, up to six months of benefits.
- Help those who have fallen behind on payments due to temporary change in housing circumstance with payments of up to $15,000 per household.
- Give relocation assistance to homeowners are have finished short sales or deed-in-lieu of foreclosure transactions.
- Provide capital to cut the outstanding principal balances of struggling borrowers who owe significantly more than their homes are worth.
Each program requires the participation of the company or agency servicing the mortgage. As of last week, GMAC, Guild Mortgage, the California Housing Finance Agency and California Department of Veterans Affairs are all taking part in all four programs.
Others, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo, are currently in some of the programs. Housing agency officials are expecting that list to grow in the coming weeks. (See a chart of servicers and their programs.)
"We're excited to offer this program," said Housing Finance Agency spokeswoman Evan Gerberding. "It's not only going to help individual families, it's also going to help to stabilize entire communities."
Funding comes from the U.S. Treasury Department’s Hardest Hit fund, money intended to help homeowners stave off foreclosures.
After receiving the $2 billion, officials from the California Housing Finance Agency - which has helped renters and first-time homebuyers with financing and programs for 35 years - spoke to community stakeholders throughout the state to create the four new programs.
“No one program will solve the foreclosure crisis affecting our state, but together we hope to make a difference for as many families as possible," said Assemblymember Norma Torres, Chair of Assembly Committee on Housing and Community Development, in a media statement. Torres is Democrat representing part of San Bernardino County.
The programs are intended for Californians who own and occupy their homes as primary residences. They must meet certain income and financial-hardship requirements.
News of the efforts comes about a week after the state Attorney General's Office announced a new statewide foreclosure fund fueled by a $6.5 million settlement of a case against two former Countrywide executives accused of predatory-lending practices. (Read "$6.5M Countrywide settlement could help homebuyers".)
Lily Leung: (619)293-1719; firstname.lastname@example.org; Twitter @LilyShumLeung
My name is David Ohara and I am bullish on Sacramento!