December 21st, 2012
by Lily Leung
Jobless benefits could end for almost 30,000 San Diegans at the start of the New Year if President Obama and Congress don’t act. But some of those residents, if they move quickly, could qualify for mortgage aid from the state.
Keep Your Home California is a $2 billion program that helps keep struggling homeowners in their properties. It catches them up on mortgage payments, helps them relocate after completing short sales and cuts their principal balances.
State officials have urged certain out-of-work borrowers to apply for a slice of the program that offers up to $3,000 a month in mortgage aid for a maximum of nine months. Since unemployment benefits could end in the New Year, borrowers must apply before this month ends, said Di Richardson, the program’s director.
Applicants must have been laid off and already receiving state unemployment benefits. They also must be going through an economic hardship, have a mortgage payment that is more than 31 percent of their income, and meet low- and moderate-income limits, which is $89,900 for San Diego County. Mortgage balances cannot exceed $729,750. Your mortgage servicer, the company to which you send your mortgage payments, also must participate in the program. For a full description of qualifications, click here.
Folks who are already in the unemployment mortgage program should expect to continue getting mortgage aid through the program until they reach nine months, even if unemployment benefits end, a possibility at this point.
“Tens of thousands of California homeowners could lose their unemployment benefits in the next few weeks unless Congress and the President agree to further extend federal unemployment benefits, and that will certainly devastate many families,” said Claudia Cappio, Executive Director of the California Housing Finance Agency, the agency administering the program. “We don’t want struggling homeowners to lose their unemployment benefits at the end of the year and then be faced with the very real possibility of losing their homes.”
More than 16,000 out-of-work borrowers in California have gotten mortgage aid through the program, totaling about $152 million in help. Locally, more than 1,300 folks have been helped, totaling more than $13.3 million.
To apply, call (888) 954-KEEP (5337) or your mortgage servicer — the company to which you send you monthly mortgage payments. Each program requires the participation of the company or agency that holds the mortgage. For more, visit KeepYourHomeCalifornia.org.
Source: The San Diego Union Tribune
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