How to KEEP YOUR HOME in California . 4 CalHFA Programs to Help Struggling Homeowners.
Many Californians who are struggling with their mortgage payments and do not want to default or end up in foreclosure , should take a serious look at these 4 Keep Your Home programs.
The, California Housing Finance Agency CalHFA , got approval for $700 Million in Federal Funding from the US Treasury Department to help California struggling homeowners keep their homes.
There are 4 different Programs intended to help struggling, financially distressed homeowners to avoid defaulting and foreclosures. All programs start November 1, 2010 and it is time that homeowners start familiarizing themselves with these programs .
The 4 programs are summarized here, and linked to the programs :
Program 1- Unemployment Mortgage Assistance (UMA) . This program provides a mortgage payment subsidy equal to the lesser of $1,500 per month or 50% of the PITIA (principal, interest, tax, insurance and homeowner’s association dues) net the borrower’s contribution, for up to six (6) months, with the purpose of preventing avoidable foreclosures until such time the borrower retains employment sufficient to meet demands of satisfying their regular mortgage payment.
The borrower will be required to contribute no more than or equal to 31% of their gross monthly household income towards the monthly mortgage payment based on CalHFA MAC, lender/servicer determination.
Download UMA requirements, details & eligibility here ( pdf )
Program 2- Mortgage Reinstatement Assistance Program (MRAP) . This program will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds will provide benefits of up to $15,000 per household or 50% of the past due amount, whichever is less, with a required dollar-for-dollar contribution match from the lender, servicer, insurer and/or borrower.
Download MRAP requirements , details & eligibility here (pdf)
Program 3- Principal Reduction Program (PRP) . This program will provide capital on a matching basis with participating financial institutions to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced to market levels needed to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program should most likely be a prelude to loan modification.
Download PRP requirements, details & eligibility here (pdf)
Program 4- Transition Assistance Program (TAP). This program is to provide homeowners with relocation assistance when it is determined that they can no longer afford their home. CalHFA's transition assistance will be used in conjunction with servicer/investor short sale and deed-in-lieu of foreclosure programs in order to help borrowers transition into stable and affordable housing. Borrowers will be responsible to occupy and maintain the property until the home is sold or returned to the lender as negotiated. Funds will be available on a one-time only basis.
Download TAP requirements, details & eligibility here (pdf)
Brought to you by,
Abraham Baghbodorian, Realtor
The, California Housing Finance Agency CalHFA , got approval for $700 Million in Federal Funding from the US Treasury Department to help California struggling homeowners keep their homes.
There are 4 different Programs intended to help struggling, financially distressed homeowners to avoid defaulting and foreclosures. All programs start November 1, 2010 and it is time that homeowners start familiarizing themselves with these programs .
The 4 programs are summarized here, and linked to the programs :
Program 1- Unemployment Mortgage Assistance (UMA) . This program provides a mortgage payment subsidy equal to the lesser of $1,500 per month or 50% of the PITIA (principal, interest, tax, insurance and homeowner’s association dues) net the borrower’s contribution, for up to six (6) months, with the purpose of preventing avoidable foreclosures until such time the borrower retains employment sufficient to meet demands of satisfying their regular mortgage payment.
The borrower will be required to contribute no more than or equal to 31% of their gross monthly household income towards the monthly mortgage payment based on CalHFA MAC, lender/servicer determination.
Download UMA requirements, details & eligibility here ( pdf )
Program 2- Mortgage Reinstatement Assistance Program (MRAP) . This program will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds will provide benefits of up to $15,000 per household or 50% of the past due amount, whichever is less, with a required dollar-for-dollar contribution match from the lender, servicer, insurer and/or borrower.
Download MRAP requirements , details & eligibility here (pdf)
Program 3- Principal Reduction Program (PRP) . This program will provide capital on a matching basis with participating financial institutions to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced to market levels needed to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program should most likely be a prelude to loan modification.
Download PRP requirements, details & eligibility here (pdf)
Program 4- Transition Assistance Program (TAP). This program is to provide homeowners with relocation assistance when it is determined that they can no longer afford their home. CalHFA's transition assistance will be used in conjunction with servicer/investor short sale and deed-in-lieu of foreclosure programs in order to help borrowers transition into stable and affordable housing. Borrowers will be responsible to occupy and maintain the property until the home is sold or returned to the lender as negotiated. Funds will be available on a one-time only basis.
Download TAP requirements, details & eligibility here (pdf)
Brought to you by,
Abraham Baghbodorian, Realtor
