Keep your home California

Keep your home California

This is a program intended to reduce the outstanding balance of the mortgage for qualifying properties that have negative equity and help prevent foreclosures.
The federally funded program was developed to help homeowners who have suffered financial hardship.  

With the cooperation of some lenders, the Principal Reduction Program reduces the principal balance of underwater mortgages with The loan modification would include a rate reduction to help US homeowners stay in their home.  However, Principal Reduction Program is not for everyone and is intended to target to low-to-moderate income home owners.

The qualify for Principal Reduction Program, the homeowner has to meet the following criteria: 

  •  Homeowner must sign a Hardship Affidavit and 3rd party authorization to document the hardship reasons.  
  • The program is tailored for first Mortgage amounts that do not exceed $729,750.00 of un-paid principal balance.
  • The general eligibility is determined by CalHFA MAC on  1st come 1st serve basis. 
  • Home owners monthly mortgage payment (Principal, interest, taxes, and insurance) must exceed 31% of the owners GROSS monthly income.  
  • Home owners must be receiving Unemployment from California Employment Development Department (EDD).  
  • Mortgage should be at serious risk of imminent defaults as substantiated by the lender and home owners documentation.  
  • Not every Mortgage Servicer is participating in this program.
  • The applicants must owner and occupy the Single Family Home or 1-4 unit home. 

Some of the major exception of the program are: 

  •  Loan to Value ratios or less than 105%
  • Owners has filed bankruptcy.  
  • A Notice of Default has been filed and recorded on the property.  
  • Loan is foreclosed and an Notice of default has been recorded.  

This program is a welcome relief to San Jose homeowners  needing more time to recover from the challenging recession that appears to have much more staying power than most of us would like.  And with anemic hiring that is continuing to hamper the recovery we anticipate this program will run out of money before long.

Finally, if you are considering a Short Sale of your home, but only need help for a few months, then you owe it to yourself to contact this program to see if you will qualify for Unemployment Mortgage Assistance.

Contact Us if you need help applying for this program.

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