Do you have a client or know someone who has struggled to keep up with their mortgage payments because of financial difficulties related to COVID-19?
Starting in January 2021, the California Mortgage Relief Program began to accept applications to help California homeowners catch-up who have fallen behind on their housing payments because of the pandemic.
The program will cover past due mortgage payments in full as a one-time grant – up to $80,000 per household – with a direct payment to the homeowner’s mortgage servicer. There is no cost to participate and the money does not need to be repaid.
To qualify for mortgage relief an applicant must be at or below 100 percent of their county’s area median income (the program website has an AMI calculator), own a single-family home, condo, or permanently affixed manufactured home in California, and have experienced a pandemic-related financial hardship after January 21, 2020. Applicants must also meet at least one of the following criteria:
• Receive public assistance; or
- Be severely housing burdened; or
- Have no alternative mortgage options through their mortgage service provider.California received $1 billion from the federal Homeowner Assistance Fund for this program. The money will be disbursed to qualified homeowners until the funds are allocated, with a projected end date of 2025. While there is no strict deadline to apply, homeowners in need should apply as soon as possible.
In addition, the homeowner’s lender must participate in the program. Please encourage any servicers you work with to join this important relief program.
Even if the foreclosure process has started, there may still be time to seek help. In addition to the California Mortgage Relief Program website, you can find additional information about mortgage relief options and frequently asked questions on the HousingIsKey website. California homeowners facing potential foreclosure are also encouraged to contact their mortgage service provider or a HUD-certified counselor at 800-569-4287
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