Reverse Mortgages Will Help 62 and Older Stay in Home Create Cash Flow

Keep Your Home California

February 19th, 2011 7:15 AM by Anne James


Contact: Evan Gerberding

Phone: 916.326.8602

Fax: 916.322.2345

CalHFA Announces Full Implementation of $2 Billion Effort

to Assist Homeowners Struggling to Remain in Homes


SACRAMENTO – The California Housing Finance Agency today announced the full

implementation of four programs to fight the ongoing foreclosure crisis in California, with the

primary goal to help families remain in their homes.

The programs, under the umbrella title of Keep Your Home California, are federally funded as

part of the U.S. Treasury Department’s Hardest Hit fund, and are aimed at helping low and

moderate income homeowners struggling to pay their mortgages amid the worst real estate

crisis in decades.

“Our goal is to get the very most out of these federal dollars to assist California families,” said

Steven Spears, Executive Director of CalHFA. “With families struggling through a number of

financial hardships and the disruption in the real estate market, these programs will help those

in need while stabilizing neighborhoods and communities severely impacted by foreclosures.”

California received a total of nearly $2 billion through the Hardest Hit fund. After consulting with

community leaders throughout the state, four programs were created to assist California


Mr. Spears said that all four programs are intended to help avoid foreclosure: three offer several

forms of mortgage assistance, as well as a separate program that will provide transition

assistance to borrowers who execute a short sale or deed in lieu transaction.

All of the programs are designed specifically for low or moderate income homeowners who are

either unemployed or are facing another financial hardship, have fallen behind on their

mortgages and owe significantly more than the value of their homes.

“In partnership with the federal government, Keep Your Home California is one more step we

are taking to help low and moderate income California families who are struggling to remain in

their homes,” said Assemblymember Norma Torres, Chair of Assembly Committee on Housing

and Community Development. “No one program will solve the foreclosure crisis affecting our

state, but together we hope to make a difference for as many families as possible.”

"The foreclosure crisis continues to hinder our potential for economic recovery, and strips

stability from our communities,” said Assemblymember Mike Eng, Chair of the Assembly

Committee on Banking and Finance. “I'm pleased that the Keep Home California program is

ramping up to address these challenges and, as the program moves forward, I will continue to

monitor its progress to ensure that it's an all around success at assisting California borrowers."

Specifically, the Keep Your Home California programs provide:

Mortgage assistance of up to $3,000 per month for unemployed homeowners who are in

imminent danger of defaulting on their home loans.

Funds to help homeowners who have fallen behind on their mortgage payments due to a

temporary change in a household circumstance. The program will provide up to $15,000

per household to reinstate mortgages to prevent foreclosures.


Money to reduce the principal owed on a mortgage for a home where the low or

moderate income homeowner is facing a serious financial hardship and owes

significantly more than the home is worth. The program requires lenders to match any

assistance provided by the Keep Your Home California program.

A full description of the programs can be found at


How to Apply:

The programs will be limited to homeowners who meet a number of criteria, including owning

and occupying the home as their primary residence, meeting income limits and facing a financial

hardship. Homeowners who consummated a “cash-out” refinance are not eligible for Keep Your

Home California programs.

To apply for the assistance, a homeowner should contact the Keep Your Home California call

center toll-free at 888.954.KEEP(5337) or their mortgage servicer – the company to which the

borrower sends monthly mortgage payments. Each of the mortgage assistance programs

requires the participation of the mortgage servicer.

As of February 9, the following servicers are participating in all four Keep Your Home California



? Guild Mortgage

? California Housing Finance Agency

? California Department of Veterans Affairs

Other servicers, including Bank of America, JPMorgan Chase, CitiMortgage and Wells Fargo

are currently participating in some, but not all programs at this time. The list of participating

servicers is expected to expand in the coming weeks.

Full details regarding servicer participation can be found at

“The problems of unemployment and the unprecedented disruption in our real estate markets

have impacted so many families,” Mr. Spears said. “These programs are designed to move

homeowners who have been told ‘no’ into the ‘yes’ category and qualify them for a mortgage

they can afford over the long term.”

Borrowers with questions about the program may call Keep Your Home California toll-free at


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Posted by Anne James on February 19th, 2011 7:15 AM


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