California only. This one is called "Keep Your Home". It was announced
by the Califorinia Housing Finance Agency to become effective Novemeber
1, 2010.
This plan offers:
1. A subsidy of up to $1500 or 50% of the monthly mortgage payment up to 6 months.
2. $15,000 or 50% of past due payments to reinstate the loan and prevent foreclosure.
3. Up to $50,000 to reduce principal balance to market level.
Homeowner requirements:
1. Occupy residence.
2. Meet income restrictions.
3. Sign hardship affidavit.
4. Have enough income to make modified payments, be delinquent, or in danger of imminent default.
5. Property cannot be vacant or in serious disrepair.
Lender requirements:
You know the part where the homeowners can receive money to reinstate their loan? The lender must match it - dollar for dollar.
And you know the part where the homeowner can receive money to reduce
the principal balance? The lender must match it by the same amount.
Ah! This is the part the banks can't come to grips with. After all, they are not in the business of losing money are they?
So, when all else fails, the homeowner can receive a one-time grant of up to $5,000 to relocate.
Comments