The US government will provide funds to assist struggling unemployed California homeowners pay their mortgage payment.
Starting November 1, 2010, federal funding will aid California homeowners who are out of work and need assistance in paying their mortgages. The funding will come from a federal program known as the Asset Relief Program. For more information about mortgage assistance, visit this website CalHFA Mortgage Assistance Corporation. The federal government is adding an additional $476.2 million to the state program that will pay homeowners up to $1,500.00 per month. Struggling homeowners will be allowed up to $1,500.00 per month, not to exceed 6 months. Of course, there is a catch. California homeowners must qualify. In order to qualifying for the program, California homeowner must be out of work, eligible for unemployment benefits, and live in a home that is tied to a problem mortgage. In addition, homeowner must be fewer than 90 days behind on their mortgage payments and have income less than $70,000 for couples in El Dorado, Placer, and Sacramento and Yolo counties and less than $54,000.00 for couples in Yuba and Sutter counties.
This government program is designed to help prevent homeowners from losing their homes to foreclosure. The program estimates that 19,000 unemployed California borrowers will be helped.
Sacramento's unemployment rate has hit a record high of 12.4% and nearly 20% in Yuba and Sutter counties. Although these funds will help, I fear that many California homeowners are already more than 90 days behind on their mortgage payments. In addition, many homeowners in Sacramento and Solano Counties have been unemployed for over a year and have fallen behind on their payments in an attempt to qualify for programs such as the Home Affordable Modification Program (HAMP). Now, it will be difficult for people to attempt to qualify for these new funds that will be available November 1, 2010.
However, for those who qualify for the funds will be able use those funds to assist them make their mortgage payments until they either get back to work or granted a home loan modification.
Homeowners who fall behind on their mortgage payments and need time to catch up may also benefits by filing Chapter 13 Bankruptcy. Homeowners can use the funds received under this new program to help make their ongoing mortgage payments and put any mortgage arrearages (past due payments) inside a Chapter 13 bankruptcy. Sacramento and Solano bankruptcy attorneys can help you.
