California Mortgage Relief program assists those falling behind
Published on January 17, 2022
The State of California recently launched a mortgage relief program to help homeowners who fell behind on mortgage payments due to the COVID-19 pandemic. Eligible households can qualify for up to $80,000 in relief for their past due housing-related bills.
The California Mortgage Relief Program uses federal Homeowner Assistance Funds to help homeowners get caught up on their housing payments. The program is absolutely free and the funds do not need to be repaid. The California Mortgage Relief Program is part of the state’s Housing is Key initiative.
Eligible applicants must be at or below 100% of their county’s area median income, own a single-family home, condo or permanently affixed manufactured home and have faced a pandemic-related financial hardship after Jan. 21, 2020, and also meet at least one of the following qualifications:
- Receiving public assistance
- Severely housing burdened
- Have no alternative mortgage workout options through your mortgage servicer
Visit the California Mortgage Relief Program eligibility website for complete requirements.
The payments will be made directly to the homeowner's mortgage provider. Homeowners will not need to repay the state for funds received. The State has set aside $1 billion for this program through the American Rescue Plan that was passed in March 2021.
For homeowners who do not have access to a computer or internet, you can contact your mortgage provider or call a HUD-certified housing counselor at 1-800-569-4287. Apply now for this program as the program will end once all funds are exhausted.