The Local Innovation Fund Program was designed to allow local governments, nonprofits and other entities across California the opportunity to tailor foreclosure prevention solutions to address their particular needs and geographic areas. Through a competitive process, CalHFA MAC selected and will fund several innovative local programs meeting the compliance requirements set forth under Emergency Economic Stabilization Act of 2008 (EESA). Program design, eligibility and benefit assistance vary with each local program.
The Community 2nd Mortgage Principal Reduction Program
The purpose is to reduce the outstanding principal balances of subordinate second mortgages for borrowers of qualifying properties with negative equity to achieve affordability on existing mortgage loans or to be utilized in conjunction with a loan modification. More information on this program is available here.
Short Sale Gateway Program
The program Lease to Keep, offered by NeighborWorks® Sacramento, provides an avenue for homeowners who have exhausted options to modify loans to remain in their homes through a short sale coupled with a lease-purchase agreement between the homeowner and NeighborWorks® Sacramento.
The program offers the homeowner the possibility of returning to homeownership at the conclusion of a successful predetermined lease period. Find out more about the program in this document.
Los Angeles Mortgage Modification Program
The Principal Reduction Program offered by the City of Los Angeles Housing Department and referred to as the Los Angeles Mortgage Modification Program (LAMMP) is designed to assist low and moderate-income homeowners in those neighborhoods most impacted by foreclosures and sub-prime lending in the City of Los Angeles. Working with local community-based partners and participating lenders/servicers, the Program provides assistance to eligible homeowners to receive a sustainable loan modification with permanent principal reduction.