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

Contact: Evan Gerberding

Phone: 916.326.8602

Fax: 916.322.2345

egerberding@calhfa.ca.gov

SACRAMENTO – The California Housing Finance Agency reports funds for four programs to to help homeowners with the funds to

 help families remain in their homes, help during unemployment and catch up on payments is going unused and remain availabe since 2009.

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 ever.

“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

families.

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."

imminent danger of defaulting on their home loans or need help catching up

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.

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.

“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

888-954-KEEP(5337).