In an effort to prevent the number of foreclosed and bank owned homes for sale from increasing further, the California Housing Finance Agency (HFA) has announced the launch of several programs meant to battle foreclosures in the state. The initiatives will be supported by a $2 billion fund which will prioritize low and moderate income earners who are finding it hard to pay their monthly loans.
The initiatives, aimed at preventing further increases in foreclosed homes in Los Angeles and in the rest of California, will be supported by federal funds provided by the U.S. Treasury Department and will be implemented under the tag Keep Your Home California. According to officials from the state HFA, not only are the programs meant to help troubled homeowners, they are also designed to stabilize communities and neighborhoods suffering from blight due to huge supplies of foreclosed properties.
Homeowners facing the possibility of seeing their properties become foreclosed homes in California have several options under the four major programs. Three will be focusing on assisting homeowners in paying their mortgages, while one will provide transition aid to those who will decide to opt for a deed in lieu or short sale transactions.
To save their properties from becoming bank owned homes for sale, unemployed borrowers can seek loan assistance worth as much as $3,000 each month. This initiative is specifically geared towards those who are at imminent risk of defaulting on mortgages. Another option is designed for households that are having difficulties paying their loans because of a temporary change in their home lives or due to an emergency.
For those who are temporarily unable to pay their monthly obligations, a financial assistance worth $15,000 may be provided. Meanwhile, other homeowners facing foreclosure homes related problems may seek a principal reduction, particularly if they are paying loans that cost more than the value of their properties. For those who opt for a short sale, they will be given aid with their relocation and during the transition period.
State officials have revealed that, aside from helping troubled homeowners, the programs are also meant to prevent foreclosures and bank owned homes for sale from further increasing in California. They remind homeowners that there are certain criteria that should be met before they can be enrolled under the programs.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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