State Program Helps Low to Moderate-Income Homeowners Who Fell Behind on Housing Payments Due to COVID-19
Attorney General Rob Bonta recently issued an alert highlighting the California Mortgage Relief Program, a relief program that uses $1 billion in federal Homeowner Assistance Funds to provide financial assistance to low to moderate-income homeowners who have fallen behind on their mortgage payments as a result of COVID-19’s impact.
“What makes the California Mortgage Relief Program so unique, is that the financial assistance provided through this program is completely free and does not need to be paid back. This is an important opportunity for struggling homeowners to receive federal grants of up to $80,000 per household that will help them get caught up on their housing payments,” said Bonta. “It is crucial that homeowners check to see if they qualify for this free financial assistance, and apply as soon as possible so that they can get the help that they need to keep their home.”
For approved candidates, this program will pay up to $80,000.00 in mortgage, property tax, and insurance bills. The program’s funds are sent straight to your mortgage servicer. The program is completely free, and recipients are not required to repay any monies received. Applicants must earn less than or equal to 100 percent of their county’s Area Median Income. They must also possess a single-family residence, condominium, or permanently fastened prefabricated home.
Applicants also must have faced a pandemic-related financial hardship after January 21, 2020. However, they may only own and occupy one property. Homeowners must be at least two payments past due by December 27, 2021. Applicants also must be either a recipient of public assistance, must pay more than 40% of their income in housing costs, or must have been denied an alternate mortgage workout plan by their servicer. They can’t have cash or assets equal to or greater than the money you need plus $20,000.00. This amount does not include money in a retirement account. The money is available on a first-come, first-served basis.
“The California Mortgage Relief Program gives qualified homeowners who were most impacted by the pandemic a chance to regain their footing financially,” said Rebecca Franklin, president of CalHFA Homeowner Relief Corporation. “The program is open to homeowners, even if they have already received government COVID-19 assistance.”
California Mortgage Relief Program applications are now being accepted online at CaMortgageRelief. The app is accessible in six different languages. The California Mortgage Relief Program will be open until all funds are allocated, which is expected to be in 2025. This program’s funds will be distributed on a first-come, first-served basis.