Calif.’s Mortgage Assistance Program gets $383M from federal government

Calif.’s Mortgage Assistance Program gets $383M from federal government

The U.S. Department of the Treasury has decided to grant $383.3 million funding to California’s Mortgage Assistance Program to help struggling homeowners and prevent foreclosures.

State Treasurer John Chiang said the financial assistance from the federal agency would likely help more than 12,000 homeowners save their homes. The program, which offers qualifying homeowners mortgage payment assistance of up to $100,000, got a big boost through the assistance.

With the assistance, Keep Your Home California will keep on operating through December 31, 2020, or until the funds are used. Previously, the program was set to end on December 31, 2017.

Announcing the federal assistance, Chiang said, “We are excited to have the opportunity to help many more California homeowners who are struggling with their mortgages due to unaffordable payments, unemployment, negative equity and other financial hardships.”

When the program was launched in February 2011, it had nearly $2 billion for California homeowners struggling with financial issues. The latest funding from the federal government brings the grand total to $2.36 billion for low-to-moderate-income families.

Thus far, Keep Your Home California has helped more than 62,200 homeowners by distributing $1.34 billion among them. It recently reported its two of its best quarters, issuing combined $190 million during the third and fourth quarters of 2015.