SACRAMENTO, Calif. (KTXL) – The country’s biggest effort to help homeowners struggling to pay off their mortgages due to the pandemic is underway in California.
The effort is called the California Mortgage Relief Program, and those in need can start asking for federal funds on wednesday.
Owning a home is a key part of the American Dream, but missed work due to persistent illness, reduced work hours, and outright job loss linked to the COVID-19 pandemic over the two recent years have made it difficult to achieve this dream.
According to housing officials, hundreds of thousands of homeowners across California are facing housing instability.
âTwelve percent of California homeowners are facing foreclosure and 6% percent are behind on mortgage payments due to the pandemic,â said Lourdes Castro Ramirez, secretary of the Agency for Consumer Services and Housing.
The California Mortgage Relief Program will fully cover overdue mortgage bills in the form of a one-time grant of up to $ 80,000 per household.
Payments will be made directly to a particular owner’s mortgage manager and no refund will be required.
The architect of it all, Congresswoman Maxine Waters D-Los Angeles fought for $ 10 billion to be included in the US bailout that President Biden pushed just to that end.
Californians will benefit from the country’s largest state pool, $ 1 billion.
“I was so worried that while we were forbearing and people wouldn’t be able to pay and not be required to pay their mortgages for maybe several months and the devil would come due,” Waters said.
Focused on low to moderate income homeowners, applicants must have missed at least two payments and their household income must be equal to or less than 100% of the median income for their county area.
“No owner, no owner should be left homeless as a result of the impacts of the COVID-19 pandemic,” said California Department of Financial Protection and Innovation Commissioner Clothilde Hewlett.
Up to 40,000 Californians could be eligible, and state officials told FOX40 that the hard lessons learned from California’s distribution of rent relief funds have been taken into account so that the effort continues. runs smoothly.
The California Mortgage Relief Program website has a “Frequently asked questions” section for owners who want additional information about the program.
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