California State Goverment Still Hoping to Cut Foreclosures

April 25, 2011


From the California Association of Realtors' "Market Matters" comes this analysis of a news release that came for the California Housing Finance Committee. The announcement stated that people who cashed out equity on their home are now eligible for three of the four "Keep Your Home California" programs.


* Keep Your Home California is a state run program funded with $2 billion from the U.S. Treasury's Hardest Hit Fund. It is designed to help low and moderate income people who are unemployed or owe more than their home is worth to pay their mortgage.


*There are four individual programs that fall under Keep Your Home California. Eligible homeowners can get up to $50,000 in assistance from one or more of the four programs combined


*Under the new rules, people who took equity out of their homes will be eligible for the unemployment mortgage assistance, mortgage reinstatement assistance, and transition assistance programs if they meet all the other program requirements. Homeowners who cashed out equity will NOT be eligible
for the principal reduction program.


* Under the program revisions, homeowners who originated mortgages after Jan. 1, 2009 also are eligible for the same three programs.


* To qualify for any of the four programs, homeowners must fall below certain income limits, must be living in the home, cannot own a second home, among other criteria.


For additional information visit http://www.keepyourhomecalifornia.org/


It does seem that to date, there are a limited number of people who meet the eligibility requirements. Both the state and the federal governments keep putting forth programs to alleviate the pain that people feel when they owe more than their property is worth. Based on the anecdotal data that we hear, most people are turned down by these programs.


Do any of you readers have suggestions for a solution?