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Underwater homeowner relief

by sfishome on May 10, 2012

Unlike so many of the government sponsored short sale laws like HAFA, the “Keep Your Home California” program looks like it is close to a sure thing if you match the criteria.  It was nearly impossible until a recent change which removed the requirement that the lenders had to match the principal reduction.  Now, qualifying homeowners can get the amount of their loans reduced with far less lender participation.  This is from SFGate:

The California Housing Finance Agency, which runs the program, says that  starting in early June, it will no longer require servicers to provide a  matching reduction, although they will have to modify the loan by reducing the  interest rate, extending the term or both. Homeowners can still get up to  $100,000 in principal reduction, but it will all come from the federal money.

The new rules aren’t in effect yet, but starting in early June you can call 1-888-954-5337 to apply.  You must use the home as your principal residence, you must have a hardship, and you must earn under the $121k San Francisco county income level (all counties have their own income standards).

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