Frequently Asked Questions

Show AllHide AllPrint All

General Information & Funding

  1. What is the Keep Your Home California program?

    Keep Your Home California is a federally funded program to help California homeowners struggling to pay their mortgages due to financial hardships. California has received nearly $2 billion in federal funding and is working with housing counselors, servicers and housing advocates to provide assistance that will help prevent avoidable foreclosures and keep Californians in their homes. Full details on the program are available here.

  2. What is CalHFA MAC?

    CalHFA MAC is CalHFA Mortgage Assistance Corporation, a nonprofit corporation separate from California Housing Finance Agency (CalHFA). CalHFA MAC Officers are employees of CalHFA and receive no additional compensation for performing these duties. The CalHFA MAC Board of Directors is comprised of CalHFA and other state leaders who are experts in the California housing crisis. CalHFA MAC was created specifically to receive and disburse federal funding to qualifying California homeowners; these funds cannot be commingled with or used for any other state budget purpose.

  3. Do I need to pay a fee to take part in the Keep Your Home California programs?

    No. You will never be asked to pay a fee to participate in the Keep Your Home California programs. In fact, you should beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan. If you suspect fraud connected to Keep Your Home California, please contact our Compliance Manager at 916-326-8686.

  4. Is funding for the Keep Your Home California program limited?

    Yes, funding for KYHC is limited to approximately $2 billion and the funds must be used by December 31, 2017. There is a benefit cap of $100,000 per qualifying household.

  5. What types of foreclosure prevention programs are available?

    Keep Your Home California consists of four programs to assist California homeowners. Three of these programs are designed to help qualifying homeowners remain in their homes and avoid foreclosure:

    • Unemployment Mortgage Assistance Program (UMA)
    • Mortgage Reinstatement Assistance Program (MRAP)
    • Principal Reduction Program (PRP)
    • The fourth program, the Transition Assistance Program (TAP), provides financial assistance to homeowners who can no longer afford their home and need help transitioning to other housing. The Transition Assistance Program may only be used in conjunction with a servicer-approved short sale or deed-in-lieu of foreclosure transaction.

    Detailed descriptions of each of these foreclosure prevention programs are available here.

  6. Is Keep Your Home California a loan modification program?

    No. Keep Your Home California is a foreclosure prevention program, not a loan modification program. KYHC funds can sometimes be combined with a modification that is provided by the homeowner’s servicer, but the KYHC program in itself is not a loan modification program.

  7. What is the California Homeowner Bill of Rights?

    The Homeowner Bill of Rights (HOBOR) is designed to guarantee basic fairness and transparency for homeowners in the foreclosure process. Some of the key provisions include:

    •  Restriction on dual track foreclosure: Mortgage servicers are restricted from advancing the foreclosure process if the homeowner is working on securing a loan modification. When a homeowner completes an application for a loan modification, the foreclosure process is essentially paused until the complete application has been fully reviewed.

     

    • Guaranteed single point of contact: Homeowners are guaranteed a single point of contact as they navigate the system and try to keep their homes – a person or team at the bank who knows the facts of their case, has their paperwork and can get them a decision about their application for a loan modification.
  8. Does contacting Keep Your Home California trigger any action through the California Homeowner Bill of Rights?

    No. Homeowners should be aware that contacting Keep Your Home California does not relieve a homeowner’s responsibility to contact their servicer regarding the HOBOR. Contacting KYHC also does not stop dual tracking, or initiate a single point of contact or halt any foreclosure or short sale process that is already in place. Until a homeowner’s servicer accepts assistance through KYHC on the homeowner’s behalf, all other processes can continue and will not be stopped simply because a homeowner has applied for KYHC assistance.

Eligibility

  1. How is my final eligibility for a Keep Your Home California program determined?

    Final eligibility for benefit assistance can only be determined after you have provided all of the documentation requested and it has been determined that you meet all program guidelines. Even then, the final determination of eligibility lies with your loan servicer who must accept the offer of assistance.

  2. Can a homeowner move out of their home or rent it out while receiving benefit assistance under a Keep Your Home California program?

    No. If during the benefit period of any Keep Your Home California program, a homeowner’s property becomes vacant or non-owner occupied, Keep Your Home California reserves the right to terminate benefit assistance. Exceptions may be made for active duty military personnel who have been deployed or relocated pursuant to military orders.

  3. What should I do if I have questions and want to discuss an ineligible decision letter I received from Keep Your Home California?

    Homeowners who have questions and want to discuss an ineligible decision letter should contact the KYHC Program at 888.559.4225, Monday-Friday from 8:00am to 5:00pm.

  4. Who is eligible for the programs?

    General eligibility requirements for these programs include, but are not limited to:

    Homeowner must:

    • Occupy home as their primary residence
    • Meet low and moderate area income limits
    • Have a hardship that is supported by a completed and signed Hardship Affidavit
    • Have adequate income to sustain modified first mortgage payments according to KYHC and participating servicer guidelines (applies to MRAP and PRP, only)payments according to participating servicer guidelines (applies to MRAP and PRP, only)

    *Home equity lines of credit are not eligible for KYHC benefit consideration even if they are in first lien position.

    Property must:

    • Be located in California
    • Not be abandoned, vacant, or condemned, or uninhabitable.
    • Be a single family, 1-4 unit home (an attached or detached house or a condominium unit): mobile homes are eligible if they are permanently affixed to the real property that is secured by the first lien.

    Mortgage must:

    • Be a *first lien mortgage
    • Have a current unpaid principal balance of $729,750*, or less (*which includes the interest bearing principal balance and any outstanding non-interest bearing forbearance balance from a previous modification, as applicable)
    • Be delinquent or at risk of imminent default

    *Home equity lines of credit are not eligible for KYHC benefit consideration even if they are in first lien position.

    For more information on eligibility requirements, visit the program descriptions located here.

  5. Do I need to be a California Housing Finance Agency borrower to qualify?

    No. Any California homeowner who meets the eligibility requirements can qualify. Your servicer must sign an agreement with CalHFA MAC to participate in one or more of the Keep Your Home California programs. This agreement with the servicer helps to ensure that funds are properly applied and reported. Servicer participation is voluntary. A list of participating servicers and the programs they offer is available on our Participating Servicers page.

  6. Do I need to be behind on my mortgage payments to be eligible for the Keep Your Home California programs?

    No*, California homeowners do not have to be delinquent on their first mortgage to apply for assistance. Homeowners who are struggling to remain current on their mortgage payments are eligible for consideration if they can demonstrate an inability to continue paying their mortgage payments due to a hardship (often referred to as “imminent default”). KYHC considers a homeowner to be in “imminent default” if the homeowner has severe negative equity**, has had (or will have) a significant increase in their mortgage payment (due to a rate increase) or has suffered a financial hardship such as unemployment that will make their first mortgage payment unaffordable.

    * MRAP requires that the homeowner be behind a minimum of two (2) months with their first mortgage payments to qualify for benefits to “reinstate” the loan.

    **Severe negative equity is only recognized in conjunction with the PRP.

  7. How do I know if I am eligible to apply for one of the Keep Your Home California programs?

    You can find out if you meet the basic eligibility requirements for a Keep Your Home California program by visiting the Eligibility Calculator. In order to determine eligibility and apply for assistance, you must speak with a Keep Your Home California representative by calling 888.954.KEEP (5337) or contact a certified counselor from one of the HUD-approved counseling agencies listed here: http://www.keepyourhomecalifornia.org/counseling.htm.

  8. What type of hardships will be considered?

    If you have suffered a severe reduction in your household income or an increase in expenses beyond your control, these hardships will be taken into consideration. Hardships include: unemployment, underemployment, death in the family, significant medical bills, divorce and severe negative equity, among others. Severe negative equity is considered a hardship indicative of imminent default for the Principal Reduction Program only.

  9. If I qualify for this assistance, do I have to pay it back?

    This assistance will be provided to eligible homeowners as a non-interest bearing junior lien secured against the property. You are not required to make payments on this junior lien. The junior lien will be forgiven after three to five years (depending on program) from the date assistance was provided. However, if you sell, refinance or reverse-mortgage your home (and remove cash equity) prior to the junior lien forgiveness date, you may be required to pay back the assistance from the proceeds of the sale or refinance of your home if there is sufficient net equity. Homeowners who refuse to sign the KYHC Note, Deed of Trust and/or Benefit Award letter will be ineligible to receive KYHC assistance.

  10. May a homeowner cancel their KYHC program benefits or withdraw from the program?

    Homeowners who have received program benefits and signed the KYHC Note, Deed of Trust and Benefit Award letter may be eligible to withdraw from the program; however, any existing lien that has been recorded will remain on the property until such time the KYHC Note has been paid in full or the term of the KYHC Note has expired, whichever occurs first.

  11. Can I apply for assistance more than once?

    Yes, it is possible to receive assistance from more than one Keep Your Home California program. For example, a homeowner who previously received UMA benefits may qualify for MRAP once they have secured employment. There is an overall benefit cap of $100,000 per household. Qualifying previously for a KYHC program does not guarantee eligibility for another program. Homeowners must meet program eligibility criteria each time they apply for assistance.

    Each Keep Your Home California program was designed to provide struggling homeowners with a unique type of foreclosure prevention assistance. For more information about each program, visit our Programs page or call 888.954.KEEP (5337) to speak with a Keep Your Home California representative who will explain program requirements and criteria.

  12. I do not live in the house that secures the mortgage I’d like to modify. Is this mortgage eligible for a Keep Your Home California program?

    No. If you own a house that you use as a vacation home or that is not your primary residence, that home is not eligible for assistance from any of the Keep Your Home California programs. Investment properties are also not eligible for assistance. All eligible properties must be primary, owner-occupied.

  13. I am a renter living in a home that is in default and is at risk of foreclosure. Am I eligible for assistance through Keep Your Home California?

    No. There is no rental assistance provided through Keep Your Home California. Eligible properties must be owner-occupied.

  14. I have a mortgage on a duplex. I live in one unit and rent the other unit. Am I eligible for a Keep Your Home California program?

    Yes. Mortgages on two, three and four-unit properties are eligible as long as you occupy one unit as your primary residence.

  15. What if I have applied for a different modification and it was approved but I turned it down? Can I apply for any assistance?

    Yes, as long as you currently meet the eligibility criteria, you may still be found eligible for assistance through Keep Your Home California. Keep Your Home California is not responsible for determining eligibility for any loan modification program. Only your first mortgage loan servicer can provide approval for a loan modification

  16. My credit union said it could not participate in Keep Your Home California programs because the funds come from TARP. Is this true?

    Keep Your Home California is funded through TARP (Troubled Asset Relief Program) by way of the Hardest Hit Fund (HHF). However, because Keep Your Home California funds are from HHF and are paid through an Eligible Entity named CalHFA Mortgage Assistance Corporation, there are no restrictions placed on credit unions participating in Keep Your Home California programs.

  17. What actions should a homeowner take if their loan servicer has not applied for the Keep Your Home California benefits to their loan in a timely manner?

    Homeowners may contact their loan servicer or KYHC to discuss and request timely application of program benefits. Most program benefits will be applied by the servicer within 30 days of receipt of program funds. Please be advised that when KYHC assistance is provided in conjunction with a loan modification, payment application timeframes may take more than 30 days depending upon the date when the servicer receives program funds.

  18. If any property on which I am a vested owner has received assistance through Keep Your Home California, am I still eligible for benefits on my primary residence?

    When a homeowner owns multiple properties or is a co-signer on a property that has previously received benefits through Keep Your Home California, he/she is ineligible for additional benefits on any other property. This applies even in a non-owner occupied/co-signer situation. If the homeowner is currently receiving benefits for one property, he/she will continue to be eligible to receive benefit assistance up to the Household Maximum Benefit limit of $100,000 for the property that received the initial benefit assistance. If a homeowner has been deemed ineligible or incomplete and has not received benefit assistance on any of their properties, he/she may reapply for benefit assistance for a different property.

The Process

  1. How do I know if my servicer is participating in Keep Your Home California? Are all servicers required to participate?

    Servicer participation in the Keep Your Home California program is strictly voluntary. To find out if your servicer is participating, either call your servicer directly, visit our Participating Servicers page, or call Keep Your Home California at 888.954.KEEP (5337) or call your servicer directly.

  2. I called for assistance and found out that my servicer is not participating in the program that I need – what should I do?

    Servicer participation in the Keep Your Home California program is strictly voluntary. To find out why your servicer is not participating in a specific program, call your servicer directly.

    Keep Your Home California continues to work with servicers to make the programs not only beneficial to eligible homeowners but also as compatible with servicer processes as is reasonably possible. In this way, and through ongoing servicer outreach, we encourage servicer participation in each of our programs. As an example of a change to a program that was intended to encourage servicer participation and enhance the benefits to eligible homeowners, the Principal Reduction Program was changed to no longer require the servicer to provide a dollar-for-dollar match of program assistance – this is a significant change that should encourage more servicer participation.

  3. How can I apply for one of the Keep Your Home California programs?

    First, you can determine your general eligibility by using our eligibility tool located at www.KeepYourHomeCalifornia.org.

    You can call Keep Your Home California at 888.954.KEEP (5337) or contact your servicer directly. Another option, for those who prefer to apply for the program in person, is to visit one of the many HUD-approved counseling agencies participating in Keep Your Home California. Use our searchable database to find the agency nearest you.

  4. What documents will I need to provide if I am generally eligible for program assistance?

    The required documentation varies by program. Our representatives will explain which documents are required based on program eligibility. Depending on the program, the following are examples of documentation that are or may be required: pay stubs, EDD payment stub or Bank of America summary, bank statements, Hardship Affidavit, 3rd Party Disclosure, tax forms from previous years, a copy of an investor approved short sale or deed-in-lieu documentation. Keep Your Home California representatives will help you with simple and clear guidance on the document requirements of each program.

  5. How will the funds be disbursed to me?

    UMA, MRAP, and PRP benefits are disbursed to your first mortgage servicer who is responsible for applying them to your mortgage. Transition Assistance Program funds are distributed directly to the homeowner after confirmation escrow has closed.

  6. I just found out that my loan is being transferred to a new servicer and they do not participate in the specific Keep Your Home California program that I applied for or was found conditionally eligible to receive benefit assistance from. What should I do?

    If you find out that your loan is being transferred to a new servicer and they are not participating in all of the programs that your previous servicer did, we recommend that you contact your new servicer directly and ask them if they have plans to participate in the specific program.

    Please be advised that servicer participation in the Keep Your Home California program is strictly voluntary. Although Keep Your Home California continues to work with servicers to encourage participation in all of our programs, we cannot require that a servicer do so.

Program Specific – Principal Reduction Program

  1. What is a loan recast?

    A recast is the process of applying funds to reduce the existing unpaid principal balance of a first mortgage loan.  The homeowner’s mortgage is not modified; the loan term and interest rate remain unchanged. However, recasting (re-amortizing) the loan based on the newly reduced principal amount will usually result in a lower monthly payment.  Please refer to the hypothetical example below.

    Before recast:

    $250,000 owed; 20 year term, 5.75% rate = $1,755.21 monthly payment, 20 year term

    Receive $100,000 through KYHC Principal Reduction Program to be applied to outstanding principal balance.  Term and rate remain the same.

    After recast:

    $150,000 owed; 20 year term, 5.75% rate = $1,053.13 monthly payment, 20 year term

    Note: As part of the loan recast process, homeowners are required to sign a KYHC Note, Deed of Trust and Benefit Award Letter prior to funding. Homeowners may also be required to sign a loan recast agreement with their servicer.

  2. What is a principal curtailment?

    A principal curtailment is the process of applying funds to reduce the existing unpaid principal balance of a first mortgage loan. The homeowner’s mortgage payment is not modified and the loan term and interest rate remain unchanged. A principal curtailment will only reduce the outstanding principal balance and the number of payments the homeowner is required to pay. Please refer to the hypothetical example below.

    Before principal curtailment:

    $250,000 owed; 5.75% fixed rate = $1,755.21 monthly payment, 20 year term,

    Receive $100,000 through KYHC Principal Reduction Program to be applied to outstanding principal balance.  Mortgage payment and rate remain the same. The outstanding principal balance and remaining term is reduced.

    After principal curtailment:

    $150,000 owed; 5.75% fixed rate, $1,755.21 monthly payment, the loan will pay off in 110 months or 9.2 years due to the reduction in the principal balance.

    Note: As part of the curtailment process, homeowners are required to sign a KYHC Note, Deed of Trust and Benefit Award Letter prior to funding. Homeowners are not required to sign a loan recast or loan modification agreement with their servicer.

  3. If I am found eligible to receive assistance from the Principal Reduction Program, how will these monies be applied to my loan?

    Keep Your Home California guidelines support application of Principal Reduction Program benefits to reduce the principal balance of a first mortgage loan and may also be used to reduce or eliminate an existing non-interest bearing forbearance. Homeowners should understand that servicer and/or investor restrictions may apply. In all cases, the entire amount of the assistance must be applied to the first mortgage.

  4. If a homeowner is actively participating in a Home Affordable Modification Program (HAMP) with their mortgage loan servicer, are they eligible for additional Principal Reduction Program (PRP) assistance through Keep Your Home California?

    Homeowners who are actively participating in a HAMP may be eligible for PRP assistance with a principal curtailment* from Keep Your Home California.  The active HAMP participation period spans from the time a homeowner has made at least one trial payment until five (5) years after their permanent HAMP date.

    *Refer to description of principal curtailment.

  5. If I am qualified to receive benefits from the Principal Reduction Program, when will my loan balance be reduced?

    PRP benefits will be disbursed to your first mortgage servicer after you have been determined eligible* and you have signed and returned the Keep Your Home California Note, Deed of Trust and Benefit Award letter.

    *If your PRP benefits are provided in conjunction with a loan modification, program benefits will be disbursed to your first mortgage servicer following your successful completion of the loan modification trial payments, and after you have signed and returned the Keep Your Home California Note, Deed of Trust and Benefit Award letter. For additional information on this requirement, please see Section 8 of the Principal Reduction Program Summary Guidelines.

  6. With the Principal Reduction Program, who is responsible for determining the property value and loan-to-value ratio that is used to calculate benefit assistance?

    Keep Your Home California is solely responsible for determining the property value and loan-to-value ratio that is used to determine eligibility and calculate program benefits. Homeowners and servicers are not required to obtain a property value and/or calculate the loan-to-value ratio to verify program eligibility or benefit amount.

Program Specific – Unemployment Mortgage Assistance Program

  1. If my loan is current when I apply for the Unemployment Mortgage Assistance Program, will Keep Your Home California keep my loan current and protect my credit?

    KYHC’s goal is to prevent avoidable foreclosures. The program is not responsible to maintain the credit standing of homeowners who receive assistance. On average, KYHC will begin making monthly Unemployment Mortgage Assistance payments within 45 days from the homeowner’s request for assistance.

  2. If my loan is delinquent when I apply for the Unemployment Mortgage Assistance Program, will Keep Your Home California bring my loan current and keep it current?

    No, if your loan is delinquent when you apply for UMA assistance, Keep Your Home California will not bring your loan current before making regular monthly payments. Payments are applied by the servicer in accordance with their policies and procedures. Generally, the first payment made by KYHC will be applied to the oldest payment due and then to each subsequent payment as funds are disbursed.

  3. If my loan is in foreclosure, am I still eligible to receive Unemployment Mortgage Assistance?

    Homeowners may be eligible to receive Unemployment Mortgage Assistance even if their loan is in foreclosure. Please call Keep Your Home California at 1-888-954-5337 to see if we can help.  KYHC will not accept an application for any program if the foreclosure Notice of Sale date is less than 21 days from the date the homeowner applies for assistance.

  4. If my first mortgage monthly payment is set up for bi-monthly installments, will Keep Your Home California continue to make my Unemployment Mortgage Assistance benefit payments to my servicer on a bi-monthly basis?

    No, KYHC will not disburse UMA benefits on a bi-monthly basis.  UMA benefits are paid once per month and include the full first mortgage payment amount, which includes (Principal, Interest, Taxes, Insurance and escrowed Homeowner’s Associate Dues, as applicable).  Homeowners who are set up for bi-monthly installments should contact their servicer and immediately cancel the bi-monthly payment election in favor of KYHC’s monthly disbursement process.

  5. If my California Employment Development Department benefits run out during the time that I am actively receiving Unemployment Mortgage Assistance benefits, will Keep Your Home California continue to provide me with benefits?

    Yes, KYHC will continue to pay UMA benefits to homeowners even if a homeowner exhausts their California Employment Development Department benefits during the time of UMA assistance. KYHC will stop benefit payments if the homeowner becomes fully re-employed or if it determines that the home is listed for sale or the homeowner is actively negotiating a Short Sale or Deed in Lieu of foreclosure with their Servicer.

  6. I was receiving benefits from California’s Employment Development Department, but the benefits have now expired. Am I still eligible to receive mortgage assistance from the Unemployment Mortgage Assistance Program?

    The EDD application process has a series of steps individuals must complete before they are deemed eligible for unemployment benefits.  The Employment Development Department has informed KYHC that an applicant is not considered fully eligible for benefits until they have actually received their first disbursement.  Because one must be fully eligible for EDD benefits in order to receive UMA program funds, KYHC has deemed the first payment as the indicator of EDD eligibility.

  7. I received my last unemployment benefit from California’s Employment Development Department about 15 days ago, can I still receive Unemployment Mortgage Assistance benefits from Keep Your Home California?

    The homeowner must have received unemployment benefits from California’s Employment Development Department within 30 days of application for Keep Your Home California UMA program assistance. If the homeowner is found eligible by Keep Your Home California, the homeowner may receive UMA benefits for up to 12 months.

  8. Are homeowners eligible for Unemployment Mortgage Assistance benefits for more than one unemployment incident?

    Homeowners may be eligible for UMA benefits more than once provided they meet program eligibility criteria and have not exceeded the 12 month, $36,000 maximum program assistance or the $100,000 overall program cap that is available per household. In order to be determined eligible for a subsequent UMA benefit the homeowner must have a remaining balance in their UMA program reserves that is equal to or greater than three full first mortgage payments.

  9. If I decide to sell my home at any time during the Unemployment Mortgage Assistance benefit period, am I required to immediately notify Keep Your Home California of this change in circumstances?

    Yes, if a homeowner lists their home for sale during the UMA benefit assistance period, they are required to immediately notify the KYHC program of this change of circumstance. If during the benefit period of the UMA program it is determined that your home is listed for sale or you are actively negotiating a Short Sale or Deed in Lieu of foreclosure with their Servicer, KYHC reserves the right to terminate benefit assistance.

  10. If I become re-employed during the Unemployment Mortgage Assistance benefit period, am I required to immediately notify Keep Your Home California of my re-employed status?

    Yes, if a homeowner becomes fully re-employed while they are receiving UMA benefits they should contact KYHC. Benefit assistance will end within 30 days of the date you advise you have become fully re-employed and are no longer receiving EDD benefits.

    In addition, KYHC also works directly with California’s Employment Development Department to determine your employment status. If it is determined that your unemployment benefits were terminated because you became fully re-employed at any time during the twelve (12) month UMA benefit period, UMA benefit payments will end within 30 days of full re-employment.

  11. I receive unemployment benefits from California’s Employment Development Department to supplement my current income. Can I still receive Unemployment Mortgage Assistance benefits?

    Yes, if a homeowner is underemployed and receiving unemployment benefits from California’s Employment Development Department, they may be eligible to receive full UMA benefits from Keep Your Home California.

  12. What if I cancel or withdraw my request for Unemployment benefits before the Keep Your Home California Note, Deed of Trust and Benefit Award letter documents are signed and returned?

    In order to protect homeowners from the threat of foreclosure, Keep Your Home California may disburse Unemployment benefit payments to a servicer prior to the return of the signed KYHC Note, Deed of Trust and Benefit Award letter. If a homeowner cancels or withdraws their request for Unemployment assistance after benefit payments have been disbursed, KYHC will take action and discontinue further benefit payments. However, all homeowners who applied for and received benefit assistance from KYHC will receive a 1098-MA tax document from Keep Your Home California as evidence of the benefits paid to their first mortgage servicer. If you think that you received this document in error, please call 888-907-9959.

  13. What will happen if I use up all the unemployment funds provided to me by Keep Your Home California and I still don’t have a job?

    Homeowners are encouraged to explore free HUD foreclosure prevention counseling, which could help you qualify for other programs. Homeowners should also contact their servicer to learn more about other foreclosure prevention options such as the Making Home Affordable Unemployment Program which can provide temporary relief from mortgage payments for up to 12 months. Some of these may include transition to other foreclosure alternatives, such as deed-in-lieu of foreclosure or short sale. Details on this will be covered during your initial telephone counseling session with the Keep Your Home California staff.

Promissory Note & Deed of Trust

  1. If asked, can Keep Your Home California provide a Verification of Mortgage?

    No. Since our benefit transactions do not require periodic payments, we cannot provide a Verification of Mortgage

  2. If I sign the Promissory Note and Deed of Trust, can I still apply for a loan modification with my servicer?

    Yes, if you sign the Promissory Note and Deed of Trust you are still eligible to apply for a loan modification with your first mortgage servicer. In addition, CalHFA MAC will subordinate our Deed of Trust to support a loan modification with your first mortgage servicer, if required.

  3. Can I lease my property after I get Keep Your Home California assistance?

    The purpose of the KYHC Program is to keep struggling homeowners in their home and prevent avoidable foreclosures. This program is not available for second homes or investment properties. If you lease your home after you receive KYHC assistance you will be ineligible to receive further assistance and may be responsible to repay the benefit proceeds if you sell your home in the future.  If during the active benefit period of any KYHC program it is determined that your home is vacant or non-owner occupied, KYHC reserves the right to terminate benefit assistance.  In the event an active duty military homeowner is deployed or relocated, pursuant to military orders, KYHC will waive the “occupancy” requirement and the “Acceleration of Payment” clause, as pertains to occupancy, contained in the Note and the “Prohibition on Transfers of Interest” clause in the Deed of Trust, as pertains to the homeowner’s ability to rent or lease the home during the period of their relocation. The homeowner will be required to provide updated residence/location information and must provide a copy of the orders requiring his/her relocation.

  4. What is the start date of the three or five year lien against my property?

    KYHC uses the Clear to Fund date as the start date for the KYHC lien. The Clear to Fund date is the date of final KYHC approval. This will always pre-date the servicer’s application of KYHC funds to your loan. If you wish to know your Clear to Fund date, you may contact KYHC at 888.954.5337 Monday-Friday from 7 am to 7 pm and Saturday from 9 am to 3 pm.

  5. Does Keep Your Home California report the loan to the credit bureaus?

    No, KYHC does not report benefit assistance loan activity to any credit bureau agency.

  6. Does accepting Keep Your Home California benefit assistance change my mortgage servicer?

    No, receiving benefit assistance from KYHC will not change your first mortgage servicer.

  7. Will the Promissory Note and Deed of Trust both be forgiven?

    Yes at the conclusion of three or five years* the Promissory Note and Deed of Trust will be released and forgiven, however;

    • If, during the three or five year term of the Promissory Note, your first mortgage loan is refinanced and you receive cash out OR if the property is sold with sufficient net proceeds to pay off the CalHFA MAC loan, the Promissory Note will be required to be paid.
    • If you subsequently sell your home for less than the total amount owed, you will receive additional consideration from KYHC. Any amount paid to satisfy your Promissory Note as a part of a servicer-approved short sale or Deed in Lieu transaction will be received from the first mortgage lien holder; not you.

    * Unemployment and reinstatement program liens are forgivable after three years. The principal reduction program lien is forgivable after five years.

  8. What does Keep Your Home California consider “cash out” from a refinance or a sale?

    KYHC defines “cash out” as, when you receive more than 1% of your new loan amount  in cash after you refinance. Also, if you receive sufficient cash after the sale of your property to pay off the KYHC lien, this would be considered cash out. If you finance the costs associated with a first mortgage refinance, KYHC would not consider these refinanced expenses as cash out for purposes of loan repayment.

  9. Can I fax the signed Promissory Note and Deed of Trust?

    No, faxed documents are not eligible for benefit consideration. You are required to provide KYHC with original signed copies of your Promissory Note and Deed of Trust as instructed.

  10. If signed and notarized Promissory Note and Deed of Trust are not returned, will benefits be cancelled?

    Yes, if you sign the Promissory Note and Deed of Trust you are still eligible to apply for a loan modification with your first mortgage servicer. In addition, Keep Your Home California will subordinate our Deed of Trust to support a loan modification with your first mortgage servicer, if required. Keep Your Home California does not charge a fee for this subordination.

1098-MA Tax Statement

  1. I didn’t receive or I lost my 1098-MA statement from Keep Your Home California, can I get another one?

    Yes. For a duplicate copy of your 1098-MA please call the Keep Your Home California processing center at 888-907-9959.

  2. I prepare my own taxes each year. Where can I obtain information on the 1098-MA statement?

    You can find more information regarding 1098-MA statements at http://www.irs.gov/pub/irs-pdf/f1098ma.pdf or call the IRS toll free at 1-866-455-7438.

  3. Do I have to pay taxes on the benefit assistance that I received from Keep Your Home California?

    Keep Your Home California does not provide tax advice to homeowners regarding our benefit assistance. Please consult a tax professional regarding tax liability of the benefit assistance provided by Keep Your Home California.

    Special Note: Homeowners may obtain additional information from the IRS regarding their determination of tax liability for Housing Finance Agency (HFA) Hardest Hit Fund programs.

    Go to: http://www.hhfri.org/uploadedFiles/HHFRI/Home_Page/IRS%20HHFRI.pdf to read an IRS publication regarding tax liability for our program, or

    Go to: http://www.irs.gov/publications/p17/ch23.html to obtain information directly from the IRS website.

  4. I received a 1098-MA tax statement from Keep Your Home California. What is this document?

    The 1098-MA provides you and the IRS with the dollar amount of financial assistance your loan servicer received on your behalf from the Keep Your Home California program in the current tax year.

  5. What should I do if I think the amount reported on the 1098-MA is incorrect?

    If you believe the dollar amount of assistance reported on the 1098-MA is incorrect; please call the Keep Your Home California program at 888-907-9959.

Counseling & Resources

  1. My loan is scheduled for foreclosure soon and I do not qualify for Keep Your Home California. What should I do?

    Contact your servicer immediately and ask to be considered for the federal government’s Making Home Affordable Program or another foreclosure prevention program. Servicers participating in the federal program may not be allowed to proceed with a foreclosure sale until you have been evaluated for it, and, if eligible, offer you a trial modification. Another option is to visit one of the many HUD-approved counseling agencies listed on the Keep Your Home California website. These agencies may help you determine if you qualify for participation in other programs and can recommend a course of action based on your unique facts and circumstances.

  2. I am struggling to make my mortgage payments, but I am having difficulty getting assistance from my servicer. What should I do?

    If you are experiencing difficulty getting foreclosure prevention assistance from your servicer, we recommend that you contact a HUD-certified housing counselor and request their assistance. A searchable list of agencies is available on the Keep Your Home California website. These agencies may help you determine if you qualify for participation in other programs and can recommend a course of action based on your unique facts and circumstances.

  3. Will any of your programs help me with my second or other subordinate mortgages?

    The Keep Your Home California programs address first lien mortgages only. There are options for homeowners who are seeking help with their junior liens / second mortgages. One such option is the Home Affordable Second Lien Modification Program (2MP) which is part of the federal government’s Making Home Affordable program (http://www.makinghomeaffordable.gov/programs/second-mortgage-help/Pages/default.aspx). Another option is made available through Community Housing Works, a nonprofit counseling agency participating in our Local Innovation Fund (http://chworks.org/lending/c2mprp/).

  4. Where can I find additional information about the program?

    The Keep Your Home California web site is updated frequently. You can also register for e-news announcements and receive our newsletter by visiting the web site and clicking on the “envelope” icon on the homepage, or you can follow us on Twitter or Facebook. If you would prefer to call, the Keep Your Home California direct line is 888.954.KEEP(5337).

Payoffs, Subordinations and Short Sale Demand Statements

  1. What should I do if I need a payoff statement, subordination agreement or short sale demand statement for my Keep Your Home California lien?

    If you need a payoff statement, subordination agreement or short sale demand statement please instruct your real estate agent or escrow officer to go to our For Title Companies page to obtain helpful information about how to request any of these documents.

  2. Will Keep Your Home California subordinate their lien so that I may refinance my property?

    Yes. Keep Your Home California will subordinate our lien to ensure eligible homeowners are able to refinance their property including with a Making Home Affordable Refinance Program (HARP 2.0) loan. This would apply to a situation where the homeowner has the opportunity for a rate or term refinance. Please instruct your real estate agent or escrow officer to go to our For Title Companies page. This page provides helpful information about how to request subordination for any refinanced transaction. Please be advised that Keep Your Home California will not subordinate our lien if the refinance transaction includes any cash out.