Frequently Asked Questions (FAQs)
General Information & Funding
What is the Keep Your Home California program?
Is funding for the Keep Your Home California program limited?
What types of foreclosure prevention programs were designed?
What is CalHFA MAC?
2011 1098-MA Tax Statement
I received a 2011 1098-MA tax statement from Keep Your Home California. What is this document?
Do I have to pay taxes on the benefit assistance that I received from Keep Your Home California?
Does the 2011 1098-MA replace the 1098 tax document that I get from my mortgage servicer?
I prepare my own taxes each year. Where can I obtain information on the 2011 1098-MA statement?
I didn't get a 1098-MA statement from Keep Your Home California, or I have lost the one sent, can I get another one?
In order to prepare my personal income taxes, I need CalHFA Mortgage Assistance Corporation's tax ID number. What is the number?
Eligibility
Who is eligible for the programs?
What types of property are eligible for the programs?
Do I need to be behind on my mortgage payments to be eligible for the Keep Your
Home California programs?
Do I need to be a CalHFA borrower to qualify?
How do I know if I am eligible for one of the Keep Your Home California programs?
What type of hardships will be considered?
If I qualify for this assistance, do I have to pay it back?
Do I need to pay a fee to take part in the Keep Your Home California programs?
Can I apply for more than one program?
What will happen if I use up all the funds given to me and I still don't have a job?
I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage
eligible for a Keep Your Home California program?
I am a renter living in a home that is in default and is at risk of foreclosure. Am I
eligible for assistance through Keep Your Home California?
I have a mortgage on a duplex. I live in one unit and rent the other unit. Could I still
be eligible for a Keep Your Home California program?
What if I have applied for a different modification and it was approved but I turned it
down? Can I apply for any assistance?
Can a homeowner receive benefits under more than one program at the same time?
Can a homeowner move out of their home or rent it out while receiving benefit assistance under a Keep Your Home California program?
Are homeowners eligible for Unemployment Mortgage Assistance benefits for more than one unemployment incident?
My loan is serviced through Bank of America and I'm interested in the Principal Reduction Program. Is Bank of America participating in principal reduction?
The Process
How do I know if my servicer is participating in Keep Your Home California? Are
all servicers required to participate?
How can I apply for one of the Keep Your Home California programs?
What documents will I need to provide if I am accepted into a program?
How will the funds be disbursed to me?
Counseling & Resources
My loan is scheduled for foreclosure soon and I do not qualify for Keep
Your Home California. What should I do?
I am struggling to make my mortgage payments, but I am having difficulty
getting assistance from my servicer. What should I do?
Where can I find additional information?
Payoffs, Subordinations and Short Sale Demand Statements – Information for homeowners who are refinancing through the Making Home Affordable Refinance Program, also known as HARP 2.0
What should I do if I need a payoff statement, subordination agreement or short sale demand statement for my Keep Your Home California lien?
Will Keep Your Home California subordinate their lien so that I may refinance my property?
General Information & Funding
Q: What is the Keep Your Home California program?
A: Keep Your Home California is a federally funded program to help California homeowners struggling to pay their mortgages. California has received nearly $2 billion in federal funding and is working with housing counselors, servicers and housing advocates to provide assistance that will help prevent avoidable foreclosures and keep Californians in their homes. Full details on the program are available at www.KeepYourHomeCalifornia.org.
Q: Is funding for the Keep Your Home California program limited?
A: Yes, funding for this program in California is limited to about $2 billion, though we will be requiring servicers to "match" every dollar on certain programs, resulting in a greater impact for California families. There is a benefit cap of $50,000 per qualifying household; with matching servicer funds, the maximum per household could include up to $100,000 in assistance.
Q: What types of foreclosure prevention programs were designed?
A: Keep Your Home California contains four programs to assist California homeowners. Three of these programs are designed to help qualifying homeowners remain in their homes and avoid foreclosure:
- Unemployment Mortgage Assistance Program
- Mortgage Reinstatement Assistance Program
- Principal Reduction Program
The fourth program, the Transition Assistance Program, provides financial assistance for homeowners who can no longer afford their home and need help transitioning to other housing. The Transition Assistance Program may only be used in conjunction with a short sale or deed-in-lieu of foreclosure transaction.
For detailed descriptions of each of these foreclosure prevention programs, visit the website at www.KeepYourHomeCalifornia.org/programs.htm.
Q: What is CalHFA MAC?
A: CalHFA MAC is CalHFA Mortgage Assistance Corporation, a nonprofit organization whose Board of Directors and Officers are employees of CalHFA and receive no additional compensation for performing these duties. CalHFA MAC was created specifically to receive and disburse federal funding to qualifying California homeowners; these funds cannot be commingled with or used for any other state budget purpose.
2011 1098-MA Tax Statement
Q: I received a 2011 1098-MA tax statement from Keep Your Home California. What is this document?
A: The 2011 1098-MA provides you and the IRS with the dollar amount of financial assistance your loan servicer received on your behalf from the Keep You Home California program in the year 2011.
Q: Do I have to pay taxes on the benefit assistance that I received from Keep Your Home California?
A: Please consult a tax professional regarding tax liability of the benefit assistance provided by Keep Your Home California.
Q: Does the 2011 1098-MA replace the 1098 tax document that I get from my mortgage servicer?
A: No. They are two separate documents.
Q: I prepare my own taxes each year. Where can I obtain information on the 2011 1098-MA statement?
A: You can find more information regarding 1098-MA statements at http://www.irs.gov/pub/irs-pdf/f1098ma.pdf or call the IRS toll free at 1-866-455-7438.
Q: I didn't get a 1098-MA statement from Keep Your Home California, or I have lost the one sent, can I get another one?
A: Yes. For a duplicate copy of your 2011 1098-MA please call the Keep Your Home California processing center at 888-907-9959.
Q: In order to prepare my personal income taxes, I need CalHFA Mortgage Assistance Corporation's tax ID number. What is the number?
A: CalHFA Mortgage Assistance Corporation's tax ID number is 27-2860498.
Eligibility
Q: Who is eligible for the programs?
A:General homeowner eligibility requirements for these programs include, but not limited to, the following:
- Own and occupy home as their primary residence
- Current unpaid principal balance of first mortgage cannot exceed $729,750
- Meet low and moderate area income limits
- Complete and sign a Hardship Affidavit to document reason for hardship
- Mortgage loan is delinquent or in imminent default
- Adequate income to sustain modified mortgage payments according to participating servicer guidelines
For a more detailed discussion of eligibility requirements, visit http://www.keepyourhomecalifornia.org/qualify.aspx.
Q: What types of property are eligible for the programs?
A: General property eligibility requirements for these programs include the following:
- Located in California
- Owner occupied; principal residence
- Mortgage is a first lien loan
- Property must not be abandoned, vacant, or condemned
Q: Do I need to be behind on my mortgage payments to be eligible for the Keep Your Home California programs?
A: No. California homeowners who are struggling to remain current on their mortgage payments are eligible if they reasonably believe they are very likely to default on their mortgage soon (often referred to by loan servicers as "imminent default"). For example, if a homeowner has had (or will have) a significant increase in the mortgage payment (due to a payment adjustment or rate adjustment upwards), or has suffered a financial hardship such as unemployment that will make the mortgage unaffordable.
Q: Do I need to be a CalHFA borrower to qualify?
A: No. Any California homeowner who meets the eligibility requirements can qualify. Your servicer, however, must sign an agreement to participate in the program to ensure that funds are properly applied and reported.
Q: How do I know if I am eligible for one of the Keep Your Home California programs?
A: To ascertain your general eligibility, visit the Eligibility Calculator at http://www.keepyourhomecalifornia.org/qualify.aspx. You can also speak with a Keep Your Home California counselor who will help determine your eligibility by calling 888.954.KEEP(5337).
Q: What type of hardships will be considered?
A: If you have suffered a severe reduction in your household income or are facing increased expenses beyond your control, these hardships will be taken into consideration.
Q: If I qualify for this assistance, do I have to pay it back?
A: This assistance will be provided to eligible homeowners as a conditional lien. You are not required to make payments; however, if you sell your home or fail to maintain your loan in good standing for three years from receiving the assistance, the lien becomes a loan and you may be required to pay it back from the proceeds of the sale of your home.
Q: Do I need to pay a fee to take part in the Keep Your Home California programs?
A: No. You will never be asked to pay a fee to participate in the Keep Your Home California programs. In fact, you should beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
Q: Can I apply for more than one program?
A: Once you have qualified for one of the programs, you may be eligible to apply for an additional program, depending on your particular financial situation; however, there is an overall assistance cap of $50,000 per household (not including matching funds provided by lenders).
Q: What will happen if I use up all the funds given to me and I still don't have a job?
A: You will then be eligible for free HUD foreclosure prevention counseling which could help you qualify for other programs. Some of these may include transition to other foreclosure alternatives, such as deed-in-lieu of foreclosure or short sale. Details on this will be covered during your initial telephone counseling session with the Keep Your Home California staff.
Q: I do not live in the house that secures the mortgage I'd like to modify. Is this mortgage eligible for a Keep Your Home California program?
A: No. If you own a house that you use as a vacation home or that is not your primary residence, that home is not eligible for assistance from any of the Keep Your Home California programs. Eligible properties must be owner-occupied.
Q: I am a renter living in a home that is in default and is at risk of foreclosure. Am I eligible for assistance through Keep Your Home California?
A: No. The purpose of the Keep Your Home California funds is foreclosure avoidance. Eligible properties must be owner-occupied.
Q: I have a mortgage on a duplex. I live in one unit and rent the other unit. Could I still be eligible for a Keep Your Home California program?
A: Yes. Mortgages on two, three and four-unit properties can be eligible as long as you live in one unit as your primary residence.
Q: What if I have applied for a different modification and it was approved but I turned it down? Can I apply for any assistance?
A: As long as you currently meet the eligibility criteria, you may still qualify for assistance through Keep Your Home California.
Q: Can a homeowner receive benefits under more than one program at the same time?
A: There are specific guidelines for receiving benefits under more than one Keep Your Home California program at the same time.
If a homeowner is currently receiving benefits under the Principal Reduction Program and becomes eligible for the Unemployment Mortgage Assistance Program, the homeowner may be eligible to collect benefits from both programs simultaneously. These are the only two programs that could potentially pay benefits simultaneously.
Q: Can a homeowner move out of their home or rent it out while receiving benefit assistance under a Keep Your Home California program?
A: No. If during the benefit period of any Keep Your Home California program, a homeowner's property becomes vacant or non-owner occupied, Keep Your Home California reserves the right to terminate benefit assistance.
Q: Are homeowners eligible for Unemployment Mortgage Assistance benefits for more than one unemployment incident?
A: Homeowners can be eligible for Unemployment Mortgage Assistance benefits more than once provided the homeowner has not exceeded the maximum program assistance per household and has a remaining balance in their program reserves that is equal to or greater than three full PITIA benefits.
Q: My loan is serviced through Bank of America and I'm interested in the Principal Reduction Program. Is Bank of America participating in principal reduction?
A: Bank of America homeowners who are interested in participating in the Keep Your Home California Principal Reduction Program, must apply directly with Bank of America for a Home Affordable Modification. Homeowners who meet the requirements for a Home Affordable Modification will be sent a financial information packet from Bank of America. This packet will contain important information about the Keep Your Home California Principal Reduction Program including how this program can be combined with a Home Affordable Modification to provide you with the most affordable payment available per investor guidelines.
If you are interested in applying for a Bank of America Home Affordable Modification that includes Keep Your Home California Principal Reduction assistance, please call 1.800.846.2222.
If you would like an opportunity to meet face-to-face with a Bank of America representative please click here for a list of Bank of America Customer Assistance Centers in California.
The Process
Q: How do I know if my servicer is participating in Keep Your Home California? Are all servicers required to participate?
A: Participation in Keep Your Home California is strictly voluntary, although the programs were designed specifically to provide servicers with additional foreclosure alternative tools, including substantial matching dollar elements to invite participation in the Principal Reduction Program. To find out if your servicer is participating, either call your servicer directly, visit http://www.keepyourhomecalifornia.org/participating.htm or call Keep Your Home California at 888.954.KEEP(5337).
Q: How can I apply for one of the Keep Your Home California programs?
A: First, you can ascertain your general eligibility by visiting the Eligibility Calculator at http://www.keepyourhomecalifornia.org/qualify.aspx. You can also call Keep Your Home California at 888.954.KEEP(5337) or contact your servicer directly. If your servicer is participating in the program, they can help you with application details. Another option, for those who prefer to apply for the program in person, is to visit one of the many HUD-approved counseling agencies participating in Keep Your Home California. A list of these agencies is located here: http://www.keepyourhomecalifornia.org/counseling.htm
Q: What documents will I need to provide if I am accepted into a program?
A: You will be asked to submit standard loan modification documents to determine eligibility for these programs. Items that establish income and occupancy, such as pay stubs and bank statements, as well as a hardship affidavit, 3rd party disclosure (needed to allow us to share information with your servicer), and if applicable, proof of unemployment, a copy of an investor approved short sale or deed-in-lieu documentation will be required.
Q: How will the funds be disbursed to me?
A: The funds will not be disbursed to you directly. Funds for all programs will be disbursed to your servicer and will be directly applied to your mortgage.
Counseling & Resources
Q: My loan is scheduled for foreclosure soon and I do not qualify for Keep Your Home California. What should I do?
A: Contact your servicer immediately and ask to be considered for the federal government's Making Home Affordable Program or another foreclosure prevention program. Servicers participating in the federal program may not be allowed to proceed with a foreclosure sale until you have been evaluated for it, and, if eligible, offer you a trial modification. Another option is to visit one of the many HUD-approved counseling agencies listed on the Keep Your Home California website at http://www.keepyourhomecalifornia.org/counseling.htm. These agencies may help you determine if you qualify for participation in other programs and can recommend a course of action based on your unique facts and circumstances.
Q: I am struggling to make my mortgage payments, but I am having difficulty getting assistance from my servicer. What should I do?
A: If you are experiencing difficulty getting foreclosure prevention assistance from your servicer, we recommend that you contact a HUD-certified housing counselor and request their assistance. A list of these agencies is available on the Keep Your Home California website at http://www.keepyourhomecalifornia.org/counseling.htm. These agencies may help you determine if you qualify for participation in other programs and can recommend a course of action based on your unique facts and circumstances.
Q: Where can I find additional information?
A: The www.KeepYourHomeCalifornia.org web site will be updated frequently. You can also register for enews announcements by visiting the web site and clicking on "email updates" or you can follow us on Twitter (@KeepYourHomeCA) or Facebook (www.facebook.com/KeepYourHomeCalifornia). If you would prefer to call, the Keep Your Home California direct line is 888.954.KEEP(5337).
Payoffs, Subordinations and Short Sale Demand Statements – Information for homeowners who are refinancing through the Making Home Affordable Refinance Program, also known as HARP 2.0
Q: What should I do if I need a payoff statement, subordination agreement or short sale demand statement for my Keep Your Home California lien?
A: If you need a payoff statement, subordination agreement or short sale demand statement please instruct your real estate agent or escrow officer to go to our For Title Companies webpage at http://www.keepyourhomecalifornia.org/payoff.htm to obtain helpful information about how to request any of these documents.
Q: Will Keep Your Home California subordinate their lien so that I may refinance my property?
A: Keep Your Home California will subordinate our lien to ensure eligible homeowners are able to refinance their property including with a Making Home Affordable Refinance Program (HARP 2.0) loan. This would apply to a situation where the homeowner has the opportunity for a rate or term refinance. Please instruct your real estate agent or escrow officer to go to our For Title Companies webpage at
http://www.keepyourhomecalifornia.org/payoff.htm. This page provides helpful information about how to request a subordination for any refinanced transaction. Please be advised that Keep Your Home California will not subordinate our lien if the refinance transaction includes any cash out to the homeowner.
888-954-KEEP(5337)