More cheese: Keep Your Home California Expands Eligibility and Benefits (again)

[SD Squatter]

Another ridiculous money pit. When will the government stop?

The primary changes are:
— Removing the “cash-out” restriction from all four Keep Your Home California programs. Homeowners were previously not eligible for the Principal Reduction Program if they had consummated a cash-out refinance on their home. This exclusion has now been eliminated under all four programs.
— Allowing homeowners who own additional properties to qualify for Keep Your Home California. Under the new policy, homeowners can own additional properties, which will help address situations where homeowners were additional signers on a home for a relative.
— Increasing mortgage assistance for unemployed homeowners from six months to nine months. Out-of-work homeowners will now be able to receive as much as $3,000 per month for up to nine months to cover mortgage, tax and insurance payments through the Unemployment Mortgage Assistance Program. Homeowners must be receiving benefits from the California Employment Development Department to be eligible.
— Increasing maximum funding from $15,000 to $20,000 to reinstate past-due mortgage loans. The Mortgage Reinstatement Assistance Program allows homeowners who have faced a financial hardship to reinstate their past-due mortgage loans, basically catching up on their loan payments.

http://www.marketwatch.com/story/keep-your-home-california-expands-eligibility-and-benefits-2011-11-07

[SD Squatter]

More goodies from your friendly government (from the article):

In addition to the Unemployment Mortgage Assistance Program and the Mortgage Reinstatement Assistance Program, Keep Your Home California also offers a Principal Reduction Program that will lower the amount owed on mortgages by as much as $50,000 in an effort to achieve affordable monthly payments for the homeowner. The Principal Reduction Program requires the mortgage servicer to match the amount on a dollar-per-dollar basis, so the maximum benefit to a homeowner could be a $100,000 reduction in principal.
A fourth program, the Transition Assistance Program, provides as much as $5,000 in relocation costs for homeowners who have decided to transition out of homeownership through a mortgage servicer-approved short sale or deed-in-lieu of foreclosure.

[bearishgurl]

I’m just curious about the “mechanics” of this CHFA program (the devil is in the details) :={

About these State Handouts to homeowners behind in their payments, to cure default, catch up on mtg payments, to catch up on their 2nd TD/3rd TD/HELOC payments (while their free-and-clear [name your luxury vehicle(s)] sit in their driveways and they have paying tenants in their “additional properties” . . . will these “transfer payments” be paid directly to the delinquent borrowers or to their lenders??

[bearishgurl]

[quote=SD Squatter]More goodies from your friendly government (from the article):

In addition to the Unemployment Mortgage Assistance Program and the Mortgage Reinstatement Assistance Program, Keep Your Home California also offers a Principal Reduction Program that will lower the amount owed on mortgages by as much as $50,000 in an effort to achieve affordable monthly payments for the homeowner. The Principal Reduction Program requires the mortgage servicer to match the amount on a dollar-per-dollar basis, so the maximum benefit to a homeowner could be a $100,000 reduction in principal.
A fourth program, the Transition Assistance Program, provides as much as $5,000 in relocation costs for homeowners who have decided to transition out of homeownership through a mortgage servicer-approved short sale or deed-in-lieu of foreclosure.[/quote]

I note that this is $2,000 MORE than most “squatters-until-the-end” typically rec’d in recent months and years!

[scaredyclassic]

This is a great reason to buy a house. If I hadn’t done so last year I’d be pissed. Now I don’t care.

[bearishgurl]

We’re now (delicately) calling homeowners who give a deed-in-lieu of foreclosure and the (more opportunistic) “homeowner” sellers who convinced (and coerced) their lenders to “take it in the shorts” to varying degrees transitioning out of homeownership.

Good L@rd!!

[AK]

Dammit, I shoulda bought a bigger house.

[Author]

Posts