Unemployment Mortgage Assistance Program now helps homeowners catch-up on past-due mortgage payments

Losing a job and looking for work is tough. Just ask anyone who has gone through the experience.

Searching for job openings online, sending out resumes – in some cases drafting cover letters – and going to interviews is often more difficult and time-consuming than a full-time gig.

Keep Your Home California continues to expand to make the experience for job-seekers who own homes much easier, more helpful and less stressful. The free mortgage-assistance program provides assistance to out-of-work homeowners so they can focus on the job search and not worry about their monthly mortgage payments.

To more effectively help homeowners, Keep Your Home California recently made some changes to the Unemployment Mortgage Assistance Program. The program now allows homeowners to get as much as 18 months or a total of $54,000 in financial assistance, whichever comes first. The move opens the door to the program for homeowners with mortgage payments of more than $3,000, the previous limit.

For example, jobless homeowners with a $3,600 monthly mortgage payment could get up to 15 months of assistance from the Unemployment Mortgage Assistance. A larger payment over less time, but still not exceeding the $54,000 limit.

Bank Owned

Keep Your Home California has also adopted in recent weeks another major change to the Unemployment Mortgage Assistance Program – the state-managed program can now help homeowners catch-up on past-due mortgage payments, a rather common challenge for many households looking for work.

Another example: An out-of-work homeowner has a monthly mortgage payment of $4,000, but gets behind by three months as he looks for work. Under the new changes, Keep Your Home California will help the homeowner “catch-up” on those past-due payments of $12,000 and cover the monthly payment of $4,000 – again up to a maximum of $54,000. Under this scenario, Keep Your Home California can help the homeowner for as long as 10 months.

Homeowners can qualify for Keep Your Home California’s Unemployment Mortgage Assistance Program if they are eligible for unemployment benefits from the state Employment Development Department – or they have received jobless benefits within the past 60 days.

Even if a homeowner’s EDD benefits have already expired, as long as it was less than 60 days ago, they can still qualify for assistance.

Before homeowners can receive assistance from Keep Your Home California, they must meet the core requirements, including a financial hardship, such as a job loss, cut in pay, divorce, death in the family or extraordinary medical expenses.

They must also meet county-by-county income requirements and their mortgage servicer – the company that collects the monthly payment – needs to participate in Keep Your Home California. A vast majority of mortgage servicers, including Bank of America and Wells Fargo, participate in the federally funded program.

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Keep Your Home California has issued almost $1.9 billion – or about 90% of the funding allocated for the program – to 78,000 households across the state.

Homeowners interested in learning more or applying for the program should call the counseling center at 888-954-KEEP (5337) or visit www.KeepYourHomeCalifornia.org or www.ConservaTuCasaCalifornia.org for Spanish speakers. The counseling center is open 7 a.m. to 7 p.m. weekdays and 9 a.m. to 3 p.m. Saturdays. Calls can be taken in virtually any language through a free translation service.

Feature photo by ChameleonsEye/Shutterstock.

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