California Launches Mortgage Relief Program to Help Homeowners: Who Qualifies, How to Apply

California’s Extensive Mortgage Relief Program to Help Tens of Thousands of Distressed Homeowners Now Accepts online applications.

The California Mortgage Relief Program aims to help up to 40,000 residents who fell behind on housing payments during the COVID-19 pandemic, according to a Press release of State.

Eligible households can claim a maximum of $ 80,000 for their overdue housing-related bills, with payments sent directly to their mortgage lender or bank, the statement said. Homeowners will not need to reimburse the state.

A total of $ 1 billion will be paid, with funding from the US federal bailout adopted last March. The California program was approved by the US Treasury Department on December 20.

Who is eligible

California has established a series of requirements for residents who may be eligible to receive program funds. They include homeownership, maximum income and financial hardship related to the COVID-19 pandemic, according to the program site.

Criteria for owners include the following:

  • They own and occupy property in California, and it is their primary residence and their only home.
  • Their residence is a single-family home, condominium or a permanently attached manufactured home
  • The entire combined household earns at least 100% of the median income for their county area (you can find your county’s MAI here)
  • They faced financial hardship between January 21, 2020 and December 27, 2021, and they can show it was because of the pandemic
  • At least two payments are overdue by December 27, 2021
  • The owner cannot have money or assets equal to or greater than the money they need plus $ 20,000 (money and assets do not include money in a retirement account, according to the website)

Beyond these, the candidate must meet at least one of these qualifications:

  • They benefit from public aid
  • They are heavily overloaded with housing
  • They have no other mortgage relief options through their mortgage agent

All eligibility conditions can be found here.

How to register

Homeowners can apply online by visiting the website

First of all, The application ask a series of questions to establish eligibility for relief funds. Once this is complete and it is determined that the person is potentially eligible, they can begin to complete the application.

During the process, they may be required to provide certain documents related to their household income and housing payments. The documents include mortgage and bank statements, utility bills and income documents such as pay stubs or tax returns, according to the website.

Those who do not have access to a computer or the Internet can get help completing the application, either by contacting their mortgage provider or by calling a HUD-certified housing counselor at 1-800-569. -4287.

There is technically no deadline to apply for mortgage relief. The program will end once all funds are allocated, which is expected to happen by 2025, the website says.

A high volume of requests is expected, which means it could take several weeks after the request for the money to be approved and sent, according to the state.

All details about the program can be found here. The website also offers a comprehensive list “Frequently Asked Questions” section for those looking for even more information.

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