A Guide to the Unemployment Mortgage Assistance Program in California

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Losing a job is a scary time. The entire experience takes an emotional and financial toll. In many industries, it can take an extended period of time to land a new job. In the meantime, maintaining the ability to stay current on bills becomes a challenge.

Unemployment Mortgage Assistance 

This free program helps individuals who are currently receiving or approved for unemployment benefits pay their mortgage for up to 18 months. Homeowners can receive their full mortgage payment up to $3,000 per month in assistance.

Many individuals facing unemployment don’t think they will qualify for this program if a spouse is still employed. As long as the household income is under $104,650, families with one income can still qualify.

The goal of the Unemployment Mortgage Assistance program is to help keep families in their homes long term. Funds provided are fully forgiven after five years. During the five-year period Keep Your Home California places a lien against the home. Should the homeowners refinance or sell before that timeframe is up, the full balance of received funds from the Unemployment Mortgage Assistance will be due.

The final eligibility criterion is determined by the loan provider. The holder of the mortgage must be willing to accept the assistance as all funds provided will be paid directly to the loan provider. Check out the participating servicers.

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Keep Your Home California

Keep Your Home California is part of a larger national initiative that recognizes the hardest hit areas of the 2008 recession, identifying 18 states. To help families in these states during challenging financial times, the federal government allocates funding to The Hardest Hit Fund®.

Each state developed their own unique programs to address the needs in their area. California’s program leverages the collaborative efforts of foreclosure counselors, housing advocates, and community partners working to help struggling homeowners. It specifically targets the challenges created by high unemployment rates in California.

There are three other programs under the Keep Your Home California umbrella. These are not directly tied to unemployment but rather for low to moderate income homeowners suffering a financial hardship. The first is a Mortgage Reinstatement Assistance Program to help qualified homeowners who are behind on their mortgage payments. The Principal Reduction Program helps individuals who owe more on their home than it is worth and are suffering a financial hardship. The last is a Transition Assistance Program. This program helps applicants who are currently going through the short sale process or a deed-in-lieu of foreclosure.

NWOC Can Help

At NeighborWorks Orange County we help individuals and families identify which programs they qualify for and complete their application.

If you are currently struggling to make your monthly mortgage payments, either due to unemployment, financial hardship, a death in the family, or other life circumstance, know that you don’t have to face this alone. We are here to help you identify your plan of action. We focus on homeownership preservation and ultimately have your best interests at heart.

Together, we can identify programs you may qualify for and identify solutions designed for your unique situation. Make an appointment with our counselors today

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Losing a job is a scary time. The entire experience takes an emotional and financial toll. In many industries, it can take an extended period of time to land a new job. In the meantime, maintaining the ability to stay current on bills becomes a challenge.