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“Keep Your Home California” Program Launched Today

The “Keep Your Home California program” launched today, aimed at keeping, you guessed it, more Californians in their homes.

The program offers four types of assistance:

1. Unemployment Mortgage Assistance Program (UMA) – For unemployed homeowners who wish to stay in their homes, this program can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100 percent of the existing total monthly mortgage payment, whichever is less.

2. Mortgage Reinstatement Assistance Program (MRAP) – This program will provide up to $15,000 per household to reinstate mortgage loans that are in arrears due to a temporary change in household circumstance, such as active military duty.

3. Principal Reduction Program (PRP) – This program aims to reduce avoidable foreclosures by providing principal reductions to those who have experienced economic hardship while also being in a negative equity position. Servicers can match funds allocated through the program.

4. Transition Assistance Program (TAP) – The final option provides funding to those where foreclosure is unavoidable to pay for relocation fees, used in conjuction with a servicer-approved short sale or deed-in-lieu of foreclosure.

Eligiblity is as follows:

• Home must be in California

• You can only own a single property, a primary residence

• First mortgage must be less than or equal to $729,750

• No cash out received on a refinance or home equity line of credit

• Mortgage must have been originated on or before January 1, 2009

• A borrower’s mortgage servicer must have agreed to participate in the program. As of last weekend, only three lenders had signed up, although more are expected to do so shortly, according to the California Housing Finance Agency, which is running all four programs.

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