California Mortgage Relief Program is a program that is aimed to help homeowners living in California to pay for due mortgage payments. Just like other mortgage relief programs, applying for the California Mortgage Relief Program require applicants to go through the legal application process.
What is California Mortgage Relief Program?
During the COVID-19 pandemic, many homes got their mortgage under forbearance due to the high rate of job loss and financial loss. By the end of 2021, many homeowners feel anxious about the prospect of paying large sums to cover the remaining mortgage dues after their mortgage exits forbearance.
The California Mortgage Relief program was established with the help of the California Housing Finance Agency Homeowner Relief Corporation and funds from the American Rescue Plan Act. The program aims to provide assistance to homeowners in California who have been greatly affected by the pandemic.
Today, the California Mortgage Relief Program is extending its arms to help homeowners in California who are in need of financial assistance for various home expenses.
If you’re a struggling homeowner, you might be eligible for the California Mortgage Relief Program. Below is the list of the eligibility requirements that you must meet:
- The homeowner should own an eligible property located in the state of California
- The homeowner must be a legal citizen of the United States.
- The homeowner and household members must be 18 years old and above.
- The homeowner missed property tax payment before the month of March 2023
- The homeowner must meet income eligibility requirements which include:
- A combined total income equal to or less than 150 percent of the Area Median Income (AMI) of all the household members.
- Must not have assets or cash on hand that are equal to or higher than the relief funds. The assets refer to investments or any material value that can be easily converted to cash.
- The property owned must not exceed more than one. Other eligible properties include:
- Single-family home properties either attached or detached
- Condominium units
- One to four units of owner-occupied properties
- Homes that are affixed to real property and its paid taxes are real estate
- Must show that they experienced financial hardship through attestation. The said attestation must describe the financial hardship being experienced by the homeowner.
How to Apply?
If you are a homeowner who needs financial assistance and think that you are eligible for the California Mortgage Relief Program, first you must prepare the following requisites:
- Social Security number
- A valid ID that shows you are a resident of the state of California
- Third-party authorization and disclosure
- Mortgage statement
- Latest income documentation
- Bank statements for the previous two months
- Income and loss statements for self-employed individuals
- Hardship attestation that includes:
- The nature of financial hardship
- Applicant acknowledgment stating that loss mitigation options are a better option to address financial hardship
- Applicant acknowledgment stating that the homeowner is willing to see financial counselors for free. This is part of completing the homeowner’s application.
For specific cases, applicants may need to submit additional documents such as:
- A written substantiation from a loan servicer and bankruptcy trustee stating that the homeowner is eligible to receive assistance. This applies to applicants who are in active bankruptcy.
- Copies of tax bills and insurance bills for homeowners who have HECM Reverse mortgages.
- A copy of the Notice of Sale document for homeowners who are claiming for an upcoming sale.
- A copy of the request note for Partial Claim Lien or Reduction Deferral should be submitted along with a mortgage statement stating the amount to be paid.
The Application Process
Once you have collected all the necessary documents, you can now apply through the program’s online portal.
On the site, you are required to answer a short questionnaire. After answering all the questions, you will be directed to the application page. Just follow the instructions given. Afterward, you are given a period of 30 days to submit all the necessary documents. Make sure that you scan the documents in order to submit them online.
The California Mortgage Relief Program has been helping many property owners over the years. If you think you are eligible for the program, just follow the steps in the application process and prepare the necessary documents.
Frequently Asked Questions
What is the maximum assistance given by the California Mortgage Relief Program?
Before, the maximum amount of assistance given is 20,000 dollars per household, but this year, 2023, the California Mortgage Relief is extending its help to eligible homeowners. The program now offers a maximum amount of 80,000 dollars per household. This have taken effect on March 2023. Moreover, The amount received by eligible homeowners is never required to be paid back.
How long is the application process before getting approved?
Once you have submitted all the necessary documents, your application will be processed and reviewed. You may need to wait for several weeks starting from the date of application before being approved.
Once approved the program will provide the necessary assistance. The California Mortgage Relief is committed to helping struggling homeowners so rest assured you will get the assistance at the soonest possible time.
When did the California Mortgage Relief Program start?
Originally, the California Mortgage Relief Program was approved by the Treasury Office in December 2021 and is aimed at helping struggling homeowners, specifically those who have been impacted by the COVID-19 pandemic.
Today, the program is still committed to providing assistance to eligible homeowners who are having a hard time paying for mortgage and other household expenses.