Faced with unemployment, we are considering trying this program,(keepyourhomecalifornia.org). We are already blessed with a very low mortgage amount and interest rate, but having only one income now is scary. KYHC says we qualify for nine months of assistance with our mortgage payments. They will, however, require a deed of trust be kept on the house, AND, if we sell the house within three years of them assisting us, we will be required to repay what they've paid to our mortgage lender. I certainly don't foresee selling, but I can't predict the future, either, in this dysfunctional economy we're trying to survive in, along with 13 million other unemployed people. I'm now trying to determine if it is in our best interest to work with KYHC. I see they're funded through the US Treasury, but in your opinion, are there any "red flags" that we should be aware of? If you have any new info pertaining to KeepYourHome, please let us know at your earliest convenience. Thank you!
Hi Alma, You're right to be careful and consider all of your options. KYHC is a State operated program used to distribute federal money granted to California for the purposes of helping homeowners avoid foreclosure. The program is 100% above board and legit. While the program is completely legitimate, it is important that you understand the terms of the assistance - nothing is "free". They set those terms to avoid people getting bailed out then selling the home. The assistance is designed to keep people in their homes and avoid foreclosure. I do have recent news on KYHC, I am going to write and article about it shortly. Essentially, the program has been unsuccessful in terms of allowing principle balance write-downs due to a requirement by KYHC that the current lender contribute equally to the write down. The State of California has removed that requirement that lenders participate and as a result, Fannie Mae and Freddi Mac (which hold 61% of California mortgages) have agreed to allow the write downs. Here's an article from the LA Times - http://www.latimes.com/business/realestate/la-fi-keep-your-home-20120508,0,3597665.story Hope this helps! Good luck and great job doing your homework!
