February 19th, 2011 7:15 AM by Anne James
FOR IMMEDIATE RELEASE
Contact: Evan Gerberding
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:
imminent danger of defaulting on their home loans.
temporary change in a household circumstance. The program will provide up to $15,000
per household to reinstate mortgages to prevent foreclosures.
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
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