SACRAMENTO, Calif.–(BUSINESS WIRE)–After successfully distributing nearly $300 million in assistance to eligible homeowners across the state, The California Mortgage Rescue Program is being expanded to provide additional assistance and expand eligibility to help even more homeowners who have suffered with their home payments due to the impact of the COVID-19 pandemic.
The program is expanding in four important ways:
“Since its inception, the California Mortgage Rescue Program has been dedicated to helping California’s most vulnerable homeowners overcome the financial challenges brought on by COVID-19,” said Tiena Johnson Hall, Executive Director of the California Mortgage Rescue Agency. California Housing Finance (CalHFA), which is administering the program through the CalHFA Homeowners Assistance Corporation (CalHRC). “This program has already lifted a heavy burden for thousands of families who were worried about losing their homes, and with the expansion it will allow even more homeowners to protect their biggest financial asset.”
“Many California homeowners are still reeling from financial hardship due to the pandemic,” said California Housing, Consumer Services and Business Agency Secretary Lourdes Castro Ramirez. “This expansion of the program will enable the state to assist more homeowners who have fallen behind on their mortgage payments. Our primary goal is to keep families in their homes, prevent foreclosures, and help homeowners on a stable path to financial recovery.”
With this expansion, the California Mortgage Rescue Program will now include funds to reduce or eliminate partial claim second mortgages and COVID-related loan deferments. Although many homeowners acted during the COVID-19 pandemic to restructure their mortgages in order to save their homes, they now face large payments at the end of their mortgage. Those who took out a partial claim second mortgage or loan deferment during or after January 2020 may now be eligible for assistance.
“Using relief funds to pay deferred balances for homeowners hit hard by COVID restores home value and puts financially vulnerable families in a stronger position to maintain homeownership,” he said. Lisa Sitkin, Senior Attorney at the National Housing Law Project. “It also alleviates the anxiety of having to figure out how to pay a very high balloon payment in the future.”
In addition, the program has reset the delinquency date for households seeking help with late mortgage or property tax payments. Homeowners must be behind on at least two mortgage payments or at least one property tax payment by March 1, 2023, to be eligible. The delinquency dates do not apply to homeowners seeking partial claim second mortgages or help with loan deferment.
Assistance is now available to homeowners whose property has up to four units. Eligible properties, which must be the applicant’s primary residence, may include houses, condominiums, permanently attached manufactured homes, ADU’s, duplexes, triplexes, or fourplexes.
In addition, homeowners who previously received funds can return for additional help, up to a total maximum of $80,000 per household, if they meet all other program requirements at the time of application. The funds, which are free and do not have to be repaid, can be awarded to cover multiple areas of need from late mortgage payments to property taxes, partial claim second mortgages and loan deferments.
Homeowners who previously applied have been notified of the program expansions, and we encourage anyone who believes they meet the new criteria to apply.
“These funds have changed lives and saved families,” said Volma Volcy, founder and CEO of The Ring of Democracy. “I have had the honor of helping homeowners who thought they were going to lose their home feel joy and relief after receiving this financial assistance. I am here to tell anyone who thinks this aid is too good to be true that it is real and they should apply today.”
“Keeping my house is important because it is not just a house. It is my home. It’s the only house my two kids know,” said Kevin Johnson, a San Joaquin County homeowner. “When I heard that I had received almost $32,000 to catch up on my mortgage, I finally had something happy to tell people. I feel lucky and this show is a testimonial that I am lucky. I still can’t believe how wonderful I felt and still feel today.”
Since its launch, the program has distributed funds to more than 10,000 California homeowners to help them catch up on their house payments.
The American Rescue Plan Homeowners Assistance Fund provides critical mortgage relief funds to all states. Launched on December 27, 2021, California is distributing its $1 billion allocation to qualified homeowners until all funds are allocated.
While there is no strict deadline for applications, homeowners in need should apply as soon as possible. Interested applicants can visit the program website at CaMortgageRelief.org to review information about eligibility and apply through the online portal.
A detailed description of the terms of the California program, approved by the United States Department of Treasury, can be viewed at here. Applicants must attach documents to determine eligibility. Documents that may be included are mortgage statements, bank statements, utility bills, and income documentation (ie pay stubs, tax returns, or unemployment documents). The application process can be completed in less than 30 minutes once applicants have gathered all the required documents and information.
Homeowners with questions can call the Call Center at 1-888-840-2594 between 8 am and 6 pm, Monday through Friday. They can also visit CaMortgageRelief.org/help to learn more about the resources and assistance available to them.
The CalHFA Homeowners Assistance Corporation (CalHRC) is a special purpose affiliate of the California Housing Finance Agency (CalHFA). CalHFA is an independent state agency serving low- and moderate-income Californians by serving as the state’s affordable housing lender. Through CalHRC, the agency is able to disburse the Homeowners Assistance Fund (HAF) under the American Bailout Act on behalf of the State of California, given its extensive experience in the field of mortgage assistance and home ownership.
For media inquiries, please contact press@camortgagerelief.org.
More Here:
Program review page
Program Eligibility Page
Follow us on our social networks:
Instagram: @CaMortgageRelief
Facebook: @CaMortgageHelp
Twitter: @CaMortgageHelp
Contacts
California Mortgage Rescue Program
916-306-7419
press@camortgagerelief.org
