California Homeowners Get Extended Mortgage Relief
In the wake of the pandemic, California has unveiled a golden opportunity for homeowners struggling to keep up with their mortgage and property tax payments. Thanks to a generous $1 billion funding from the American Rescue Plan Act of 2021, the California Mortgage Relief Program stands as a beacon of hope, offering up to $80,000 in financial assistance to those in need. This isn’t a loan that adds to your financial burdens; it’s a lifeline directly paying off your debts without requiring repayment.
Despite the clear benefits, many eligible homeowners are still in the dark about this program or unsure how to access this critical aid. Recognizing the need for greater outreach, the program has expanded its eligibility criteria to include more homeowners, even those whose financial difficulties have persisted well beyond the initial COVID-19 restrictions.
This extension means that homeowners who have missed at least two mortgage payments or one property tax payment by February 1 can now seek help. To qualify, your household income must not exceed 150% of the area’s median income, which, for example, is set at $132,450 for an individual and $189,150 for a family of four in Los Angeles County. The program is committed to exhausting its funds to support as many homeowners as possible, with nearly a quarter of the funds still available for disbursement. So far, approximately 30,700 households have benefited, each reducing their debt by an average of $25,000.
The importance of this program cannot be overstated, especially for vulnerable groups like the elderly, who have faced significant challenges due to the pandemic’s long-lasting impacts. Organizations like the Korean American Federation of Los Angeles, under the leadership of James An, have stepped up to assist those who lack the technological means to apply, ensuring wider access to this vital support.
The program not only covers mortgage and property tax debts but also extends its hand to those with reverse mortgages, partial claim second mortgages, and deferrals, offering a comprehensive solution to various financial hardships faced by homeowners.
To apply, homeowners should visit the California Mortgage Relief Program’s website (camortgagerelief.org), where applications are accepted online. Assistance is available in multiple languages, ensuring that help is accessible to all Californians in need.
This initiative represents a critical step toward recovery for many Californians, offering not just financial relief but a chance to regain stability and peace of mind in these challenging times. As the program continues to reach out to eligible homeowners, it stands as a testament to California’s commitment to supporting its residents through and beyond the pandemic’s hardships.