In the coming weeks homeowners may be able to take advantage of mortgage assistance plans offered through the California Housing Finance Agency. Numerous homeowners across the nation have struggled in various areas of their home loan and for a number of reasons like unemployment or the loss of value in their home.
While national programs like the Making Home Affordable Program have offered underwater assistance options and unemployment home loan aid, state-specific programs like the Keep Your Home initiative have been launched in the hopes of helping homeowners who are struggling in various states.
Reportedly, these programs for California residents should be available no later than November, but homeowners will have to go through the application processes in order to qualify for certain forms of assistance. However, for those who do qualify, unemployment assistance may be offered and underwater principal reduction programs could be used to help some homeowners as well.
Obviously, unemployment has become a major problem for the housing market and homeowners who are without a job or who may be underemployed are having a difficult time keeping their home. Yet, it’s hoped that these unemployment mortgage assistance plan, like those launched from the Keep Your Home program will assist unemployed homeowners in California.
Also, in certain cases where homeowners have lost value in their home, principal reductions could be offered in instances where a homeowner’s imminent foreclosure could be avoided through this type of aid. Numerous individuals have asked mortgage servicers for principal reductions, but many banks have been unwilling to lower home loan principal amounts in the majority of cases.
Also, other states have similar programs in place or plan to implement these mortgage assistance plans from funding given by the Hardest Hit Fund, residents of California may be able to start taking advantage of these plans at the beginning of November, if not sooner. While, again, not all homeowners may qualify for this assistance, it’s hoped that with both national mortgage aid programs and state specific programs available to homeowners, more foreclosures will be prevented on a wider scale.