It seems that $700 million wasn’t enough to totally help California with its housing issues, although that was known at the time California received the first round of cash from the federal government. Now the state is being gifted with another $476 million to help unemployed homeowners to get over the hump.
The California Housing Finance Agency, which normally works with first time homeowners to help them buy homes, is receiving the money, and has until October 1st to create a program to dole out the money to unemployed homeowners. Early projections are that they will receive upwards of $1,500 for six months while looking for new work, which will help them pay their mortgages in the short term. However, California also has the option of rolling the new money into one of the four programs that was created for the first round of money.
The money is coming from the federal government’s Troubled Assets Relief Program (TARP), which was the program that tried helping homeowners get mortgage modification loans last year with limited success. The Treasury is hoping that the extra money will help homeowners whose initial mortgages are under $750,000 and who qualify for unemployment insurance will be helped, and in turn stem the tide of foreclosures, which still haven’t gone down all that much.
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Mitch writes on real estate, finance, and many other things.
What everyone seems to be missing here is that not all homes are occupied by the actual homeowner. How many people are renting homes and have lost their jobs and now they have lost their unemployment. When they can no longer pay their rent, they will do everything to stay in the home until the sheriff comes and removes them that could take up to 90 days. In the meantime who will pay the mortgage on that home? That is why foreclosures are going to keep going up. That is nice that they have selected only people who own homes to help out financially, what about people who rent? The govt thinks that if you don’t own a home you must be homeless. You can pay your mortgage late but if you don’t have the rent on the first, your out of there in 30-60 days. Then who will rent to you if you don’t have a job? It is my opinon that thousands of families will be homeless in california by years end.
I believe the government is doing what it can, but they can’t pay for everything. The housing industry really does need the help more right now, but it is unfortunate that not everyone can be helped.