Distressed California Homeowners May Qualify for California's Keep Your Home California Transition Assistance Program (TAP)
If your financially distressed California clients can no longer afford their homes and are pursuing a short sale or a deed in lieu of foreclosure, they may be eligible for financial help with their relocation to alternative housing.
The funds come from the Transition Assistance Program (TAP), part of the Keep Your Home California Program.
The state of California is providing up to $5,000 in transition assistance to qualified homeowners who can no longer afford to stay in their homes. You can help by advising your distressed clients that they must:
To learn more about the Transition Assistance Program's guidelines, please fill out the form below.
Homeowner requests the total amount owed to bring mortgage payments current and pays it.
o Forbearance or Re-payment plan
Homeowner negotiates with the mortgage company to allow them to repay back payments over a period of time.
o Sell the Property
Homeowner with sufficient equity lists their property with a qualified agent that understands the foreclosure process in their area.
o Rent the Property
Homeowner with a mortgage payment low enough that market rent will allow it to be paid converts their property to a rental.
o Mortgage / Loan Modification
Homeowner negotiates with lender to modify the interest on the loan, the principal balance, or any combination of these, resulting in a lower payment.
o Home Affordable Foreclosure Alternatives Program (HAFA)
Homeowner qualifies for HAFA and is offered pre-approved short sale terms and cash incentives for relocation assistance.
o Short Refi
Homeowner negotiates with lender to refinance a mortgage for less than what is owed on the property.
o Deed-in-Lieu of Foreclosure
Homeowner returns the property to the lender rather than go through the foreclosure process.
o Deed for Lease
Homeowner returns the property that is FHA-insured back to the lender and lease the property for a twelve month period.
Homeowner with significant equity in his/her property and good credit standing refinances their mortgage.
Homeowner with significant non-mortgage debt who is unable to pay these debts or his/her mortgage payment files for bankruptcy which liquidates assets and/or reorganizes debt to pay back creditors.
o Servicemembers Civil Relief Act (SCRA 303)
A member of the military who is experiencing financial distress due to deployment (and can prove entered into debt before employment) qualifies for temporary relief under this act.
o Homeowners Assistance Program
A member of the military or federal employee qualifies for this program which has a variety of assistance programs including private sales, government purchase, and/or foreclosure assistance.
o Short Sale
Homeowner has a financial hardship and qualifies for a sales transaction where the lender is willing to accept the payoff of a mortgage for less than what is owed.