Every once in a while, I am contacted by homeowners that want and need to refinance, but are unable to on account of high qualifying ratios, being underwater on their home, or because they lost their job. Unfortunately, I cannot help people directly when it comes to certain situations, especially in terms of not being able to qualify and if their current loan is not owned by Fannie Mae or Freddie Mac. In situations like this, a modification or negotiation request must be dealt with directly with the service provider (the institution to which you make your mortgage payment).
Making Home Affordable has been one federal government program that encourages service providers to help homeowners in trouble, but I also just came across a new one I heard about for California in particular and wanted to share with you. It is called the Keep Your Home California program.
This program is intended for families with low and moderate income. Click here for the income limits, which depend on the county you live in.
Your service provider must be signed up with the program. The Keep Your Home California website is pretty clear, so just follow its guidelines, and call their toll-free number for assistance. Sometimes it helps just to speak industry terms in order to get favorable results. Note that some of the service providers participate in an Unemployment Mortgage Assistance program as well. I hope this can help some of you, and I would love to hear about any of your tips or experiences, if you do end up asking your service provider about it.
