California is a state that’s had a lot of housing problems over the past two years. Now the federal government is going to be sending money to the state to help out in some way.
The California Housing Finance Agency will be receiving $700 million out of $1.5 billion coming to the five main states whose housing industry is in major disarray, via the Emergency Economic Stabilization Act. The idea is to help these states stimulate programs that will help out homeowners such as loan modification, short sales, and other things as necessary.
The CalHFA has until tax day, April 16th, to come up with a plan that helps low and moderate income homeowners with their housing issues. This is geared towards helping those homeowners whose homes are suddenly worth way less than what they’re trying to pay mortgages on. California is one of those states whose homeowners were victims of bad mortgage loans. If the federal government agrees with the plan, the money will be sent to the state in July.
Governor Arnold Schwarzenegger was ecstatic, saying :California has been hit hard by the housing crisis, and while my Administration took decisive action that has helped many Californians stay in their homes, this new funding will play a vital role in aiding the state’s neediest homeowners. I am glad that the Obama Administration is recognizing the continued need in California. This funding is more than just critical assistance for families, it means stabilizing neighborhoods and entire communities. I have directed my Housing Finance Agency to put together a thorough action plan to ensure we get every dime of this funding and assist the greatest number of Californians.”
See also:
California Real Estate Fact Sheet
California Real Estate Turnaround
Mitch writes on real estate, finance, and many other things.