The economic impact of COVID-19 has significantly affected all Californians, including a great many homeowners who are now at risk of losing their homes in foreclosure. If you are experiencing financial difficulties due to COVID-19, you may be eligible for mortgage relief.
California is due to receive $1 billion in federal funds that it will use to relieve homeowners in financial distress. If your hardship was caused by losing a job, a business, or other income because of the pandemic, you may qualify for these funds and avoid foreclosure.
California’s Mortgage Relief Plan Process
The California Mortgage Relief Plan must be approved by the U.S. Treasury before relief can be distributed, but an estimated 20,000-40,000 homeowners may be eligible to receive up to $80,000 in mortgage relief funds.
Once the program is launched, homeowners can submit an application. Documents that may be requested during the application process include a mortgage statement, bank statements, utility bills, and documentation of income. Once the application is approved, payment will be sent directly to the homeowner’s mortgage lender to help avoid a foreclosure.
Eligible applicants must be Californian residents whose income is at or below 100% of their county’s Area Median Income; they must own a single-family home, condo, or manufactured home (permanently affixed); and they must have experienced financial hardship related to the pandemic after Jan. 21, 2020.
Additionally, eligible applicants must meet at least one of the following qualifications:
- Currently receiving public assistance
- Severely housing burdened
- Have no other alternative mortgage workout options available to them
Contact an Attorney for Assistance
If you are a homeowner at risk of losing your home because of the COVID-19 pandemic, our legal team at Lawyers Realty Group can help you take maximum advantage of the California Mortgage Relief Program as soon as it begins.
We can also provide the legal support you need to avoid foreclosure by other means, such as refinancing, negotiating a loan forbearance, loan modification, or a making alternative arrangements with your lender that helps you keep your home.
For more information and a free legal advice on your particular situation, schedule a free consultation today! Contact us online or call (949) 264-0966.