The “keep your home program” received nearly $2 billion in federal funds to help struggling California families pay their mortgage and stay in their homes. The California Housing Finance Agency is handling this program.

The program officially launched this month January 2011. Depending on the circumstances, you may be eligible for up to $3,000 in assistance to help pay your mortgage. The term is six months with the expectation that you will be employed at the end of this time frame.

Eligibility will rely on your lender participating in the program. So far these lenders are participating in the program.

  • Wells Fargo
  • Bank of America
  • Chase
  • GMC
  • Citi Mortgage is expected to become part of this program.

The intent of the program is to help homeowners avoid foreclosure. Some of the requirements for eligibility:

  • Mortgage amount less than $729,750
  • Income cannot be more than 120% of the Median Income for a family of four in the county where you live
  • Hardship – you must be able to document a hardship
  • Must be able to receive unemployment benefits
  • Your Mortgage is delinquent or at risk of becoming a default (imminent default)
  • The mortgage must have been initiated before January 2009

Imminent Default Defined

  • Current or less than 31 days delinquent
  • Contacts the Servicer for a modification
  • Appears potentially eligible for a modification
  • Claims a hardship must be screened for imminent default

One of the keys is to contact your lender ask for help, explain the situation and determine what they can do for you. Document the conversation – who you talked to, dates, etc. Don’t be afraid to talk with your lender. With regard to the hardship documentation, be very specific. Do not be embarrassed to explain your situation, you are not alone thousands of homeowners are in the same situation. Be persistent, don’t give up after one phone call.

For more information and to apply contact the California Housing Finance Agency, Tel: 888-954-5337, or visit their website at

Keep in mind the saying “This too shall pass”.

About Linda Urbick Linda

has written 261 articles on this blog.

Filed under: Real Estate

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