California homeowners may find new forms of mortgage assistance through the Keep Your Home Program, which is under development at the present time and set to begin assisting troubled California homeowners in November. This new program is hoped to provide assistance from additional funding to aid California homeowners who are having trouble making their mortgage payments for various reasons, like low income or unemployment.
Some of the qualifications for this program seem to mirror the Making Home Affordable Program requirements, but certain qualifications will obviously be tailored for California residents. Additional reports also indicate that under this program homeowners may be provided subsidies or grants to help make their mortgage payment or principal reductions.
Unemployed homeowners, low income homeowners, and those who are simply in danger of foreclosure may receive assistance through this new plan as long as their home is their principle residence, they meet certain income requirements and are in a financial position of specific hardship. Some homeowners may qualify for assistance of up to 50% of their monthly mortgage payment for a set period of time, up to 50% of a past due amount or a principal reduction on homes that have severe negative equity.
The program from the California Housing Finance Agency, again, is set to begin this Keep Your Home Program on November 1st but there are already individuals who believe this program’s success could be similar to the Making Home Affordable modification plan. It’s hoped that homeowners who have been hard hit by mortgage difficulties in California will benefit from these state specific programs, but there are pessimists who believe that trouble could arise when homeowners are working with mortgage servicers or cases, similar to the Making Home Affordable Program, where homeowners may not meet the stringent qualifications.