According to a recent article in The Fresno Bee, more lenders are participating in a state-run mortgage assistance program that could help homeowners avoid foreclosure.
The $2 billion “Keep Your Home California” program launched in February 2011. According to the article, “the program provides homeowners with a temporary mortgage payment subsidy of up to $3,000.00 a month, up to $15,000.00 to catch up on mortgage payments, or a principal reduction for those who owe more than their homes are worth.”
The article reports that only 10 mortgage lenders signed on to participate in the program last year, including Bank Of America, JP Morgan Chase, Wells Fargo, GMAC and CitiMortgage. Now 55 lenders are currently participating. Many California homeowners may not be aware of this resource, which may explain why a surprising few sought help from the program last year. “I thought every single person that had a mortgage would call us for help and that hasn’t been the case,” said Diane Richardson, program director.” Once the word gets out, it could be likely that more and more California homeowners will seek help. If you are facing the possibility of foreclosure, talk to your mortgage lender to see if they participate in the “Keep Your Home California” assistance program.
Can’t Get Your Bank to Modify Your Mortgage – There Might be a “Different” Option
According to recent numbers in a Reuters.com article, nearly 40% of homeowners in Southern California are underwater in their homes with about one in every 270 homes in Buena Park have been foreclosed upon. Thousands of SoCal homeowners have been hit by the recession and found themselves unable to stay current on their mortgage payments. Many of these folks have been turned down for mortgage modifications or simply could not make their payments even after they had their loan terms changed in their favor. Luckily for some of them (and not their neighbors), the marketing company Brainiacs From Mars is coming to the rescue. They are looking to turn houses in billboards in exchange for paying the homeowners’ mortgages as long as the homes stay painted (for up to a year). According to the company’s web site, applicants must own their homes. Brainiacs from Mars will paint the outside of the properties over the course of 3 to 5 days and they must remain painted for over one month to qualify. The homeowners can cancel after one month and the company will come back out and repaint the houses to their previous colors.