BANK’S POLICY PREVENTS QUALIFIED HOMEOWNER FROM MAKING PAYMENTS WITH GOVERNMENT ASSISTANCE!

The Insanity Continues: Bank’s Policy Prevents Qualified Homeowner From Making Payments With Government Assistance!

Last month we published a post about the new KEEP YOUR HOME CALIFORNIA program.  This program was designed to help California homeowners who lost their jobs by paying qualified borrower’s mortgage payments of up to $ 3000 per month for up to six months, giving the homeowner time to find new employment.

This is a case where a government program could actually help both the homeowner and the lender.  If the homeowner finds new employment they get back on track and another foreclosure is avoided.

How can something so simple not work?  Bank Policy does it again.

The San Francisco Chronicle recently published an article about a borrower who qualified for the program.  His problem was that his monthly mortgage payment is $ 3180 per month.  The program will pay $ 3000 directly to Bank of America.  The problem is that Bank of America will not accept a second payment of $ 180 to make up the payment shortfall.  B of A policy requires that the payment be made in full from one source!  So Bank of America is willing to let the loan become delinquent, pushing the homeowner into foreclosure, rather than accept his supplemental payment!

Unfortunately, Bank of America is not the only myopic loan servicer with this policy.  Chase, CitiMortgage, GMAC and Wells Fargo have their heads buried as deeply in the sand!  To date only CalHFA and Cal Vet are the only servicers who will accept supplemental payments.

This policy limits the KEEP YOUR HOME CALIFORNIA’s effectiveness to qualified borrowers with monthly payments under $ 3000.  How much TARP money did taxpayers give to these organizations?

UNBELIEVABLE!

Here is the link to the full story:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/02/08/BU7R1HJT69.DTL&tsp=1

KEEP YOU HOME CALIFORNIA: WHO IS ELIGIBLE

KEEP YOUR HOME CALIFORNIA PROGRAM:  Who Is Eligible

 

The “Keep Your Home California” program is a $ 1.83 billion-with a B-program designed to help low to moderate income California homeowners to keep their homes.  They have a target of an estimated 100,000 California homeowners.  A key requirement to qualify for the program is that the homeowner must have endured a verifiable loss of income.

Who is Eligible?

• The program is being administered by CalHFA (California Housing Finance Agency). They also back loans to qualified borrowers.  A borrower does NOT have to be a CalHFA borrower to qualify.
• The borrower MUST own and occupy the home as their primary residence
• The borrower must meet the low to moderate income limits.  The limits are set by county.  The limits are fairly liberal.  In El Dorado, Sacramento and Placer counties a family of two may not have a combined income over $ 70,150 per year. $ 78,950 for a three person family.
• The borrower must complete and sign a hardship affidavit and document the reason for their hardship.  Losses of employment, reduction of income, disability or illness are all acceptable for this program.  Supporting documents may NOT be more than 60 days old.
• The borrower must have sufficient income to sustain the modified mortgage payments, according to lender guidelines.
• The borrower must be able to meet the CalHFA guidelines
• The borrower’s mortgage must be delinquent or the servicer must have received documentation from the borrower that substantiates an imminent default that meets the hardship qualifications.
• Borrowers who have recently encountered a financial hardship due to their military service are presumed eligible on the condition that their servicer has received a financial hardship statement provided by the borrower.

General Property Eligibility Requirements

• The mortgage involved must be a first lien.  Second mortgages are not part of the program.
• The total original mortgage can not exceed $ 729,750
• The property must not be abandoned, vacant, condemned or in a serious state of disrepair.
• The property must be owner-occupied, the borrower’s principal residence and located in California.

For more information about the “Keep Your Home California” program go to http://www.KeepYourHomeCalifornia.org .

If you are in need of assistance in avoiding or stopping foreclosure contact Mike West at (916) 337-0658 for a no cost consultation.

KEEP YOUR HOME CALIFORNIA PROGRAM

KEEP YOUR HOME CALIFORNIA PROGRAM

The California Housing Finance Agency (CalHFA) reported this week that its “Keep Your Home California” program implementation will be delayed.  They report logistical problems have delayed the original November 1^st start date.

The “Keep Your Home California” program is a $ 1.83 billion-with a B-program designed to help low to moderate income California homeowners to keep their homes.  They have a target of an estimated 100,000 California homeowners.  A key requirement to qualify for the program is that the homeowner must have endured a verifiable loss of income.

There are two primary forms of aid.  The first is $ 875 million earmarked for unemployed Californians.  The program plans to help them make up the shortfall in their mortgage payments.  The second is $ 790 million earmarked to directly reduce mortgage loan balances for qualified Californians.

A major reason for the delay in implementation is that Fannie Mae and Freddie Mac instructed their loan servicers to participate in this program.  These two quasi government agencies handle the vast majority of mortgages sold on the secondary market and the volume has overloaded the CalHFA staff.

Although the program has been delayed for several weeks, homeowners struggling to make their mortgage payments are encouraged to contact their loan servicer or lender and advise that they wish to be considered for the program.  DO NOT WAIT!  These programs tend to run out of funds quickly.

For more information about the “Keep Your Home California” program go tohttp://www.KeepYourHomeCalifornia.org .

Stay tuned for more information.

If you are in need of assistance in avoiding or stopping foreclosure contact

Mike West at (916) 337-0658 for a no cost consultation.