SACRAMENTO, Calif.--(BUSINESS WIRE)--California Housing Finance Agency announced today that the number of mortgage servicers participating in the state’s Keep Your Home California program has increased 500 percent since the program started last February 2011.
Fifty-five mortgage servicers —representing 90 percent of the mortgages in California—are now participating in this $2 billion state-run program that offers mortgage assistance to help California families stay in their homes. More than 10,000 homeowners have either received funding or are in the process of getting financial help from Keep Your Home California.
The 55 participants include six of the largest servicing companies in the state: Bank of America, JPMorgan Chase, Wells Fargo, GMAC, CitiMortgage and EMC Mortgage. One West Bank, Provident Funding and First Bank Mortgage are among those servicers who have joined in recent months.
“Adding servicers is critical for our effort to help financially strapped families in the state,” said Claudia Cappio, Executive Director of the California Housing Finance Agency, which administers the Keep Your Home California program. “We’re pleased that more servicers are joining the effort, and we would like to see even more companies helping families to avoid foreclosure and remain in their homes.”
Mortgage servicers are the companies that receive mortgage payments from consumers. Each of the servicers participates in at least one of the four Keep Your Home California programs. These important programs include:
- Unemployment Mortgage Assistance: Mortgage assistance of up to $3,000 per month for homeowners collecting unemployment benefits and are in imminent danger of defaulting on their home loans. Homeowners can receive help for a maximum of nine months, and a total of $27,000.
- Mortgage Reinstatement Assistance Program: As much as $20,000 per household to reinstate mortgages to prevent foreclosure. The funds are available to homeowners who have fallen behind on their mortgage payments due to a temporary change in household income, such as reduced pay or work furloughs.
- Principal Reduction Program: Lowers the principal owed on a mortgage by as much as $50,000 when the homeowner is facing a serious financial hardship and owes significantly more than the home is worth. Lenders must match any assistance provided through Keep Your Home California.
- Transition Assistance Program: Provides up to $5,000 in relocation assistance for homeowners who can no longer afford their home when their lender agrees to a short sale or deed-in-lieu of foreclosure. Homeowners must occupy and maintain the property until the home is sold or returned to the servicer.
“Keep Your Home California offers a number of opportunities for families to remain in their homes, and some can receive funding from multiple programs,” said Cappio.
Keep Your Home California is aimed at helping low and moderate income homeowners who are struggling with their mortgage payments amid the worst real estate crisis in generations. The programs are limited to homeowners who meet a number of criteria, including income limits and facing a documented financial hardship. Each of the mortgage assistance programs requires participation of the homeowner’s mortgage servicer.
A complete description of the programs—including eligibility, success stories, frequently asked questions and videos that could help answer any questions—can be found at www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org, the Spanish-language site.
How to Apply:
To apply for assistance, or to ask questions about the program, homeowners should contact Keep Your Home California toll free at 888-954-KEEP (5337). They can also visit the Keep Your Home California web site at www.KeepYourHomeCalifornia.org.
Another option for homeowners who prefer an in-person counseling session is to visit one of the many nonprofit counseling agencies across the state that are partnering with Keep Your Home California. A list of these agencies can be found at www.KeepYourHomeCalifornia.org/counseling.htm