California has already lost a record number of homes to foreclosure and now another 95,000 borrowers are facing the same fate.
Fortunately for some of those homeowners, they might be able to hold off foreclosure through a new program announced Thursday in Sacramento called "Keep Your Home California."
The state of California received $2 billion from the federal government to help distressed homeowners. Now they're ready to put the money to work depending on the homeowner's income, financial hardship and other basic requirements.
Some may qualify for financial help of up to $3,000 a month for six months.
Here are some of the program's eligibility requirements. The homeowner must:
- Own and occupy the home as their primary residence.
- The current unpaid principal balance of their first mortgage cannot exceed $729,750.
- They will need to meet low and moderate-area income limits.
- Complete and sign a hardship affidavit to document reason for hardship.
- The mortgage loan must be delinquent or in imminent default.
The program's limits vary from county to county. Here's the breakdown:
- Los Angeles County -- $75,600.
- Orange County -- $104,650.
- Riverside County -- $78,000.
- San Bernardino County -- $78,000.
- Ventura County --$104,050.
Additionally, some of the funding has been set aside to reduce the principal on homes that are underwater.
But right now only internet mortgage lender Ally Financial is participating.
The hope is to get others like Bank of America and Wells Fargo to join in.
Because funding is limited to $2 billion, it's best to apply for the program early.
Homeowners can call the program toll free at (888) 954-5337 or visit www.keepyourhomecalifornia.org for more information.