California expects mortgage-aid program to begin in weeks

The California Housing Finance Agency (CalHFA) reported this week that its "Keep Your Home California" program will be delayed because of logistical issues with the program. The program was scheduled to begin Monday, Nov. 1.

KEEP THIS IN MIND

• The "Keep Your Home California" program is a $1.83 billion government aid program that will pay down loan balances and provide monthly cash assistance to struggling California homeowners.

• One of the logistical complications that has caused the delay is the fact that Fannie Mae and Freddie Mac last week instructed their loan servicers to participate in the program, dramatically increasing the number of potentially eligible homeowners.

• Funded with federal money, the program offers four different types of cash assistance for an estimated 100,000 low- to moderate-income California homeowners. Additionally, eligible borrowers must have endured some sort of loss of income.

• The two primary forms of aid include $875 million dedicated toward unemployed Californians who need help making their monthly payments, and $790 million to be used to directly reduce mortgage loan balances.

• Although the program has been delayed for several weeks, homeowners struggling to make their mortgage payments are advised to not wait for assistance programs to begin before contacting their servicer or lender. Instead, homeowners should begin working with their lender or servicer at the first sign of difficulty.

• More information about the "Keep Your Home California" program can be found at www.keepyourhomecalifornia.org. A toll-free hotline soon will be established.

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http://www.sacbee.com/2010/11/02/3151100/california-expects-mortgage-aid.html