|Criteria of Programs Expanded to Help Homeowners Attain Affordable Mortgage Payments|
|Keep Your Home California recently announced changes to the Principal Reduction Program and the Mortgage Reinstatement Assistance Program to help more low and moderate income homeowners remain in their homes.
The changes to the Principal Reduction Program will assist homeowners who have suffered a financial hardship attain an affordable monthly mortgage payment and provide them with an opportunity to solve their mortgage troubles, before they fall behind on their payments. The state program, which is overseen by the California Housing Finance Agency (CalHFA), can provide up to $100,000 in assistance to eligible homeowners. For homeowners who have already fallen behind on their monthly payments, Keep Your Home California more than doubled the amount of Mortgage Reinstatement Assistance Program funding that is available to help homeowners catch-up on past due mortgages.
“Despite an improving economy and job market, there are still many homeowners who are struggling every month or just need a little help to get back on track with their payments,” said Tia Boatman Patterson, Executive Director of CalHFA. “Our goal is to help California homeowners prevent avoidable foreclosures, and the changes to the program are the latest in that effort.”
The program criteria changes affect the Principal Reduction Program, which allows homeowners with unaffordable monthly mortgage payments to apply for as much as $100,000 in assistance to reduce the principal balance. Principal reductions often lead to savings of hundreds of dollars each month on homeowners’ mortgage payments.
The state-managed program has also more than doubled the funding limit for the Mortgage Reinstatement Assistance Program. Homeowners who are behind at least two months on their payments can now receive up to $54,000 to help them catch up on their past-due mortgage payments. The previous maximum was $25,000.
Click here to read the entire press release