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More Mortgage Servicers Sign Up to Offer Homeowner Relief
The Keep Your Home California program, aimed at keeping low- to moderate-income families out of foreclosure, got a boost in June when more mortgage servicing companies agreed to participate.
The 20 servicers now involved make up 80% of the mortgages in California. There were only eight servicers involved when the program was rolled out in February.
Part of the federal government’s $2 billion Hardest Hit Fund, aimed at stemming the tide of foreclosures in states that have seen high levels of unemployment, Keep Your Home California offers four types of assistance to homeowners. According to www.KeepYourHomeCalifornia.org, the following program options are available to those who qualify:
Unemployment Mortgage Assistance Program
Provides up to six months of mortgage payment subsidy if you are unemployed, up to $3,000 a month.
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The Mortgage Reinstatement Assistance Program
Provides funds to help reinstate your mortgage if you have fallen behind on your payments, up to $15,000.
The Principal Reduction Program
Provides up to $50,000 in assistance, on a dollar-for-dollar matching basis with participating lenders, to reduce a homeowner’s principal balance if they have negative equity.
The Transition Assistance Program
Provides homeowners with relocation assistance when they can no longer afford their home (used in conjunction with a short sale or deed-in-lieu of foreclosure). Homeowners are responsible for occupying and maintaining the property until the home is sold or returned to the servicer as negotiated.
The 20 participating servicers include six of the largest in California—Bank of America, JPMorgan Chase, Wells Fargo, GMAC, CitiMortgage and EMC Mortgage—though they don’t all participate in each of the four programs.
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