California State Treasurer John Chiang has announced that the state has received $383.3 million from the US Department of the Treasury for its Keep Your Home California program. The funds will be used to assist another 12,000 or more homeowners in the state avoid foreclosure. The program is now funded through the end of 2020 unless all of the funding is used prior to that date. Prior to the additional funds, the program was set to expire at the end of 2017.
The Keep Your Home California program began in February of 2011 with almost $2 billion in funding. As of April 2016, the program has helped over 62,200 homeowners who were struggling with making their monthly mortgage payments or were behind. Around $1.34 billion of the program’s money has been used, $190 million of which was dispersed during the second half of 2015.
Data provided by housing website Zillow shows that California had the greatest amount of negative-equity in the country at the end of 2015’s third quarter with $65 billion. One issue is employment. As of March 2016, over one million residents of the state were unemployed, many of whom are homeowners. Around 50,000 homeowners were 90 days or more behind on their mortgage as of the end of 2015, many of which qualify for help from the Keep Your Home California program. Those who do qualify may receive as much as $100,000 in financial assistance.
Moneytips can help you refinance your existing home loan.