Get Back on Track with Mortgage Reinstatement Assistance ProgramPosted: December 2, 2011
Note: This is the second blog in a four-week series that details the four programs available from Keep Your Home California.
Life has many twists and turns, and sometimes circumstances can throw a rather wicked curve.
Take the current economy and employment situation, where almost one of every eight Californians is jobless, many more have accepted lower-paying or part-time positions, and others face furloughs or hefty pay cuts.
For hard-hit homeowners, a loss of income can make the monthly mortgage payment a rough road. Sometimes, homeowners may miss a couple mortgage payments, and catching up can be tough.
So, Keep Your Home California established a program that helps homeowners get back on track when they face imminent danger of losing their home to foreclosure.
The Mortgage Reinstatement Assistance Program allows low- to moderate-income homeowners to reinstate their past-due mortgage loans. Basically, if you are behind on payments – but not in foreclosure – we can help with as much as $20,000. Now, how much depends on numerous factors, so we encourage homeowners to learn more about the program at www.KeepYourHomeCalifornia.org and call our counseling center at 888-954-5337.
A few of the more straightforward program requirements include:
- The loan must be less than two payments delinquent as of the date of request for assistance.
- The applicant must own and occupy the home, which includes condominiums or town houses.
- The house must be the homeowner’s primary residence.
- Financial hardship cannot be from a voluntary employment resignation (as in “I quit!”).
Another requirement, one that deserves at least a few sentences – homeowners must have adequate income to make the reinstated first lien mortgage. The Keep Your Home California program will help cure the delinquent first mortgage, including possible payments to reinstate the loan from foreclosure, but we must make sure homeowners can afford the payments down the road. So, the mortgage payment cannot exceed 31 percent of the homeowner’s gross monthly income.
Quite honestly, the last thing we would want to do is get a homeowner in good standing on their mortgage only to have them start missing payments a few months later, especially when those dollars could benefit another homeowner able – and willing – to stay current on their loan.
And, of course, just like all of the four programs, your mortgage servicer must participate in the program. A vast majority of the 50 mortgage servicers currently participating in Keep Your Home California (see the complete list at http://www.keepyourhomecalifornia.org/participating.htm) signed on for the Mortgage Reinstatement Assistance Program. (Get the details on mortgage servicers from this previous blog.)
Keep Your Home California has allocated $129.4 million for the Mortgage Reinstatement Assistance Program. We estimate the program will help about 9,200 homeowners, based on an average funding of $14,048.
So, now that you know the basic information about the Mortgage Reinstatement Assistance Program, check out the details at http://www.keepyourhomecalifornia.org/mrap.htm and call 888-954-5337 to see if it will work.
If you would like more information about Keep Your Home California and our four programs, check www.KeepYourHomeCalifornia.org (www.ConservaTuCasaCalifornia.org in Spanish) or call 888-954-5337 from 7 a.m. to 7 p.m. Monday through Friday, and 9 a.m. to 3 p.m. Saturdays.