The California Mortgage Relief Program, which launched in December 2021, has broadened eligibility to help California homeowners who have fallen behind on their housing payments because of the Covid-19 pandemic. As of May 2022, the program has provided $32 million in grants for low-and moderate-income homewoners.
The program covers past due mortgage paymenst as a one- time grant – up to $80,000 per household – with a direct payment to the homeowner’s mortgage servicer. As part of the expanded program, past due property taxes for eligible applicants are covered not only for those who are behind on their mortgages but now for those who are current as well, up to $20,000. There is no cost to participate and the money does not need to be repaid.
Basic qualifications for mortgage and property tax relief include all of the the following:
• Household income at or below 150 percent of their county’s area median
income (the program website has an AMI calculator);
• Own one single-family home, condo, or permanently affixed manufactured
home in California;
• Experienced a pandemic-related financial hardship after January 21, 2020;
• Missed at least two mortgage payments before June 30, 2022, and are
currently delinquent; and
• Past due amount of $80,000 or less at the time of application to the program
Basic qualifications for property tax relief only include all of the following:
• Either mortgage-free or current on mortgage payments; and
• Missed at least one property tax payment prior to May 31,2022.
California received $1 billion in federal funds for this program, which will continue until the funds are allocated, which must be no later that 2026. While there is no strict deadline to apply, homeowners in need should apply as soon as possible.
In addition to the California Mortgage Relief Program website, camortgagerelief.org, you can find addtional information about mortgage relief options and frequently asked questions on the Housing Is Key website: https://housing.ca.gov/homeowners/mortgage_relief_foreclosure_resources.html. California homeowners facing potential foreclosure are also encouraged to contact their mortgage service provider or a HUD-certified counselor at 800-569-4287.
Please pass this information on to anybody who may be in need of such services as this does not appear to be widely advertised. I just learned of it myself by reading the Dept. of Real Estate bulletin. Let’s all help each other attain a healthy financial future!