KEEP YOUR HOME CALIFORNIA
Programs (effective January 10, 2011)

On June 23, 2010, California received approval for Federal Funding to develop programs to help reduce foreclosures. California was awarded nearly $2 billion in funds from Hardest Hit. The funds were used to develop 4 unique programs which are collectively called “Keep Your Home California”. All the programs were developed in collaboration with numerous community partners, housing advocates and foreclosure counselors. All programs offered by Keep Your Home California are completely free, homeowners will never be asked to pay a fee to apply. In order to Please be advised that not all homeowners will qualify and not all banks and servicers participate with the programs. The following are brief summaries of the programs available under Keep Your Home California. To see full program descriptions, click on the program name below.

Unemployment Mortgage Assistance Program (UMA) – Intended to assist homeowners who have experienced involuntary job loss. UMA will provide temporary financial assistance in the form of a mortgage payment subsidy of varying size and term to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems. These funds can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100% of the existing total monthly mortgage, whichever is less. The maximum assistance per household is $36,000.

Mortgage Reinstatement Assistance Program (MRAP) – Intended to assist homeowners who have fallen behind on their mortgage payments due to a temporary change in a household circumstance. MRAP will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds can provide benefits of up to $25,000 per household. (average funding of $18,052.46)

Principal Reduction Program (PRP) – Intended to assist homeowners at risk of default because of an economic hardship coupled with a severe decline in the home’s value. PRP will provide capital to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced in an effort to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program will most likely be a prelude to loan modification. (Servicers that contribute through matching funds increase the benefit for homeowners). First-lien mortgage loan amount can’t exceed $729,750. Homeowner can receive a principle reduction up to $100,000 per household (average funding of $86,029.41)

Transition Assistance Program (TAP) – Intended to promote community stabilization by providing homeowners with relocation assistance when it is determined that they can no longer afford their home. TAP will be used in conjunction with a servicer-approved short sale or deed-in-lieu of foreclosure program in order to help homeowners transition into stable and affordable housing. Homeowners will be responsible to occupy and maintain the property until the home is sold or returned to the servicer as negotiated. Funds will be available on a one-time only basis. Homeowner can receive up to $5,000 to help with rent, moving expenses and security deposits.

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