馃攳
California Mortgage Relief Program - THE Guide for Homeowners to get up to $80,000 - YouTube
Channel: WIRE Associates - Christian Walsh
[0]
The California Mortgage Relief
Program is finally here.
[2]
And that means up to $80,000 per home for
homeowners who are behind on payments.
[9]
We're going to run through
how this program works.
[11]
We're going to show you how to
figure out if you're eligible for the
[14]
California Mortgage Relief Program.
[16]
And stick around to the end because
we're going to give you a phone
[18]
number for additional help in case
you need it that isn't easy to
[22]
find unless you know where to look.
[23]
Hey there.
[24]
Christian Walsh real estate
agent with WIRE Associates.
[27]
We've been helping buyers and sellers
and tenants and landlords with the
[30]
best advice to survive these crazy
days in California and beyond.
[35]
And we're here with a big update on
the California Mortgage Relief Program.
[38]
So first off is Where did
these funds come from?
[42]
Well, they were in the American Rescue
Plan that passed in March 11th, 2021.
[47]
There was $10 billion that was set aside.
[50]
The state of California has received
a billion of that and they're rolling
[54]
it out to eligible homeowners.
[56]
A few important points about this program.
[59]
It is absolutely free there is no
cost to apply to the California
[64]
Mortgage Relief Program.
[66]
The money that comes from the California
Mortgage Relief Program is a grant
[70]
and Does not need to be paid back!
[72]
Of course, you need to talk with
your tax advisor to see if there
[75]
are any income tax implications.
[78]
Another important point is the money is
sent directly to your mortgage servicer.
[83]
It doesn't get sent to any homeowner.
[85]
The money will go from the
California Mortgage Relief Program
[89]
directly to the mortgage servicer.
[91]
So if you're ready to dive into
applying for $80,000 for the California
[97]
Mortgage Relief Program, hit that
like button and let's get started.
[101]
Where do we go to find the
California Mortgage Relief Program?
[104]
You can go to camortgagerelief.org
or my favorite website, one
[111]
of them housingiskey.com.
[114]
So if you've seen my other videos
about rental assistance, that's the
[117]
same website and they now have the
California Mortgage Relief Program.
[122]
They have links on that same site.
[124]
So here we are, we are housingiskey.com.
[127]
So you'll see on the left-hand side, talks
about a rental assistance program and
[132]
they still are accepting applications.
[135]
So that'd would be landlords and tenants
when tenants are behind on rent and
[139]
on the right-hand side, we have the
California Mortgage Relief Program.
[143]
There are six different languages,
and you're going to get started
[147]
by clicking on apply now.
[149]
When you click the button here
you are, you're at the California
[152]
Mortgage Relief Program website.
[154]
This is where you're going to go to start
the process, to determine eligibility.
[160]
So we are going to discuss exactly
how to determine eligibility, and
[164]
there's a lot of different steps to it.
[166]
This is not for the faint of
heart, but it is worth doing
[169]
to get a crack at that $80,000
[172]
one of the first steps is you're
going to want to figure out if your
[174]
income qualifies for the program.
[176]
So you want to be at a hundred percent
of the area median income or less.
[182]
So they have a calculator
here pretty handy.
[185]
You type in your county in
Orange County and then the number
[187]
of people in your household.
[189]
And that's literally the entire number.
[190]
So I have, uh, me and my wife and
my four kids, I put down six and it
[196]
will show me based on Orange County
where I live and the size of my
[200]
household, what a hundred percent
of the area median income would be.
[204]
And for a household size
of six, it's $156,050.
[208]
So you're going to do that for
your county and for the number
[210]
of people in your household.
[212]
Now to figure out the income, it
would be the income that everybody
[216]
who's 18 and over is bringing in.
[218]
So in my case, husband, wife,
and my oldest daughter, Who's 18.
[222]
We'd add up all that income and
see if it falls under the a hundred
[226]
and fifty six, fifty or less.
[228]
All right.
[228]
So there's a lot more to this.
[229]
We're going to keep going on the
eligibility, but stick with me.
[232]
We're going to try to make
this as easy as possible.
[234]
So over to the right here, we've done our
calculation on the area median income.
[238]
It's looking good so far when we apply,
we're going to need proof of that income.
[242]
So any pay stubs you have, if you're
receiving unemployment, you need that.
[246]
Any income you're receiving, you're going
to have to upload that documentation.
[250]
They will also need tax
returns and bank statements.
[253]
So make sure you have that.
[254]
More to determining eligibility.
[257]
So next you need to look through
this list and then we're going
[261]
to click in and get dive deeper.
[263]
So you don't have to read all this,
but if you're receiving public
[266]
assistance, that could be unemployment
WIC, uh, section eight, for example,
[272]
public assistance from the national,
[274]
state or local level, then you
will be able to apply for this.
[279]
If you're severely housing burdened.
[281]
What this means according to this
program is when you add up your
[285]
mortgage insurance and tax payment
and divide that into your income.
[290]
If that payment is more than
40% of your income, then you are
[294]
considered severely housing burdened
and you can apply to this program.
[299]
The other thing you need, and you
don't need all three, you need any one
[303]
of these three, the other would be,
there's no alternative you've been in
[307]
forbearance and you can't take advantage
of any other programs or you're not in
[311]
forbearance you can't take advantage
of, for example, of a loan modification,
[316]
uh, and any sort of loan forgiveness.
[318]
Your servicer is not going to be
able to give you any of those.
[322]
You need one of these three that we
just ran through in order to apply.
[325]
And now we've clicked the button
to see more about eligibility.
[328]
And this is important.
[329]
We're going to run through these and
then we're going to take a little
[331]
test before we get to the application.
[333]
It's not a test I'm giving.
[334]
You'll see to test that the website gives.
[336]
So we already covered number
one, which is household income.
[340]
We already did the calculator.
[342]
So this is important.
[343]
The homeowner must be at
least two payments behind.
[346]
By December 27th, 2021.
[349]
And that's essentially the date
that this program was approved.
[352]
So if you're missing payment, if you
start missing payments in January
[356]
of 2022, it's too late, you have to
have at least two payments missed
[360]
before in either 2020 or 2021.
[363]
You must own and occupied the
California home as a primary residence.
[367]
And you can only have one piece of real
estate and that's the home you live in.
[371]
If you have an investment property,
in addition to your primary residence,
[375]
you are disqualified from this program.
[377]
You can only own one piece of real estate.
[379]
And that piece of real estate
must be your primary residence.
[382]
And there's more qualifications
to that piece of real estate
[386]
that we're going to go into.
[387]
You also must experience a
qualified financial hardship that
[390]
led to missing those payments.
[393]
And the qualified financial hardship
must be after January 21st, 2020,
[397]
there will be an attestation, uh,
document that you have to sign for this.
[402]
And the hardship is either
a reduction in income.
[407]
So COVID effected the income you're
making you lost your job, or there
[410]
was a reduction in the amount
of pay you are bringing home.
[413]
And or an increase in
your living expenses.
[417]
Because of healthcare or needing
to take care of another family
[420]
member, et cetera, or cost of goods
have gone up, those are considered
[424]
hardships that will qualify for this.
[427]
And then there's two more and this is
where it starts to get very complicated.
[430]
And this is going to take some
work on your part in order
[433]
to apply for the program.
[434]
We'll skip to the easier one.
[436]
The last one, basically, you
can't have assets on hand or cash,
[440]
assets being money, market accounts
or things easily liquidated.
[443]
That money on hand cannot exceed
the relief funds plus $20,000.
[448]
So if you're going for $80,000 and
you've got $150,000 or even $101,000 in
[454]
the bank, you will not qualify for this
program because that's the amount you're
[459]
going after the $80,000 plus the $20,000.
[461]
And you do the math.
[462]
If you're going after $5,000
in these funds, plus $20,000.
[466]
So you can't have liquid assets
of $25,000 or more in the bank.
[471]
The other key to this is a
retirement accounts don't apply.
[474]
They're not going to look at retirement
accounts and use those funds.
[477]
All right.
[477]
Let's circle back to
the, the confusing one.
[480]
So the original unpaid principal
balance on the loan must be, and
[486]
this is the primary mortgage,
this is the first mortgage, must
[490]
be lower than the conforming loan
limit at the time of origination.
[495]
So this is somewhat complicated.
[497]
You're going to have to go back to
the paperwork when you got the loan
[502]
determine when the loan was originated
to the date that the loan came through
[508]
for the real estate you're purchasing,
and then you need to look at.
[512]
amount and make sure it falls below
the conforming loan limits at the
[518]
time and there's a link you can
click here that will take you to
[521]
find the conforming loan limits.
[523]
Here's a quick tutorial when you click
that conforming loan limits button.
[527]
So this is where it takes you.
[528]
You come to the conforming loan
limits page from the FHFA and you
[533]
are going to go ahead and remember,
you've already looked up when the
[536]
origination date is for your loan and
you've looked up how much that is.
[541]
So now we've got to compare to see how it
compares to the conforming loan limits.
[546]
So you'll see all these different charts.
[548]
There's going to be a bunch
of Excel spreadsheets in here.
[551]
It says the year.
[552]
So let's say you're loan you got in 2015.
[555]
So you're going to click on the Excel
spreadsheet and that's going to download.
[558]
You open up the Excel spreadsheet
and you're going to have every
[561]
county in the United States.
[563]
So you're going to go quickly
get to California, and you're
[565]
going to find your county there.
[568]
I'm already there in California.
[569]
So for orange county, 2015, the
conforming loan limit was $625,500.
[575]
So as long as my first mortgage was
$625,500 or less, then I'm fine.
[580]
And I can apply for this program.
[582]
So far so good.
[583]
So far you're passing the tests.
[585]
You're ready to go, go ahead and
click the, get started button and
[589]
it'll take us to the next steps.
[590]
So now we're going to take a little test.
[592]
It's going to ask us a bunch of
questions and we've already been
[595]
asked some of these questions.
[597]
So yes, there was a hardship.
[599]
Yes.
[599]
We've missed those mortgage payments.
[601]
Yes.
[601]
We only have one residential property.
[604]
Yes.
[604]
It's our primary residence.
[606]
You're going through checking these.
[608]
The next one.
[608]
Yes, it's on your primary mortgage loan.
[610]
Your first.
[611]
The last one, if you check
this, it won't work for you.
[613]
You will not be eligible for the program.
[615]
And that is a business is
listed as the homeowner on my
[618]
mortgage, this is incredibly rare.
[621]
It's very rare because most of the
conventional lenders don't allow
[625]
a business LLC LP, for example.
[627]
To adopt a loan or to get a loan
they have to go to other resources.
[632]
So do not check this box unless it's true.
[634]
And if you do check this box,
you will not be eligible.
[638]
So then you put in a property, zip code,
we'll use 92660, Newport Beach, and then
[644]
you're going to put in the type of home.
[646]
So single family home, condo, townhome
would fall under condo or a manufactured
[652]
home that's permanently attached.
[654]
Those are the only eligible properties.
[656]
If you click anything else
[658]
so even if you live in a duplex, you
live in one of the units, triplex,
[662]
fourplex, or you have a manufactured
home that's not permanently attached.
[666]
You're not going to be
eligible for the program.
[669]
So that's important to understand
it's only going to be single family
[672]
homes, condos, town homes and
mobile homes that are permanently
[676]
attached to their foundation.
[677]
We should get an a, it looks
like we may be eligible.
[680]
We still have more to do so we're going to
go ahead and click the start application.
[684]
From there, you're going to go ahead
and create an account in this portal.
[687]
And you're going to go ahead
and start a new application.
[690]
And this is where you're going
to dive in and have a whole
[692]
lot more questions to answer.
[693]
So be prepared with your paperwork.
[695]
A lot of this stuff you'll
know off the top of your head.
[697]
In fact, a lot of this stuff
you're going to be answering again,
[701]
that you've already answered.
[702]
So go ahead and run through this.
[704]
So the income verification
will be where you put in your,
[708]
uh, any pay stubs you have.
[709]
If you're receiving unemployment, et
cetera, it's going to go in there.
[712]
There'll be a hardship statement where
you talk about exactly what happened,
[716]
whether it was a reduction in income
and, or an increase in expenses.
[720]
It's going to ask you for any
assistance that you've received.
[724]
It's going to need
additional documentation:
[726]
tax returns, bank statements.
[728]
You're going to have to sign an
authorization, allowing a third party
[731]
to do work on your behalf, which
is the California Mortgage Relief
[734]
Program to work with your servicer.
[737]
There'll be additional
information about fair housing.
[739]
The outreach program is
related to your servicer.
[743]
Your mortgage servicer will be able
to reach out to you to talk about
[747]
additional ways to work through, uh,
through loan modification, et cetera.
[753]
And then the attestation as well
will be filled out at the end.
[757]
As mentioned, the funds will go directly
from the California Mortgage Relief
[761]
Program to your mortgage servicer.
[764]
So that's the company that you've been
making the payments to, or in this
[767]
case, haven't been able to make payments
to, you've been working with them
[770]
perhaps on a forbearance or loan mod.
[772]
That servicer must be one of the providers
that has signed up for the program.
[777]
And the list is growing.
[779]
This is a link on their website.
[780]
You'll see a lot of the big
servicers are already in here, and
[784]
there will be more that are coming.
[786]
You should encourage
your servicer to join in.
[789]
If you don't see them on this list, or
if you call up and ask them about the
[793]
program and they say, they're not part
of it, definitely encourage them to join.
[796]
Make sure you check out this
link on their website as well.
[799]
And I have it in below in the description.
[801]
Make sure you watch out for
scams related to this program.
[805]
They are already anticipating that
there will be scammers out there
[809]
looking to make money off of folks.
[811]
So read through this, it
gives some good advice.
[814]
It's important to note that there
is no charge for this program.
[819]
So, if someone's asking you for
money to help with the application
[821]
or saying there's an application
fee, that's just not true.
[825]
And there's other
important things on here.
[826]
Don't transfer the deed to your home.
[828]
If people say they're housing
counselors, attorneys are there from the
[832]
government, a lot of good advice on here.
[833]
Be very, very suspicious and careful.
[836]
This is a program from the state
of California that will pay
[840]
money directly to your servicer.
[843]
They will not give money to you at all.
[845]
So make sure that you don't
fall for a scam involving
[848]
funds, supposedly coming to you.
[850]
Make sure you don't sign any
paperwork you don't understand
[853]
at all and be careful out there.
[856]
And if you do find somebody that you're
convinced is a scammer or up to no
[860]
good with this, there's a phone number
you can call to report them as well.
[863]
So please be very careful.
[865]
This is a great program for those
who are eligible, but there will
[868]
be plenty of people out there
trying to take advantage of others.
[872]
And thanks for sticking around.
[873]
We promise to give you a phone number
that you can't find anywhere else, but you
[876]
can find it when you do an application.
[878]
And that number is down here.
[880]
It's 1 888 840 2594
[884]
When you call that number, you'll
be able to enter an extension.
[886]
When you have a case manager
assigned, when you press one, you
[889]
can get help resetting your password
or setting up an online account.
[893]
Two is going to give you information on
completing or submitting an application.
[898]
Three will be to check on the
status of your application.
[901]
Four, that's an important one.
[903]
This would be for anybody
who has questions, general
[905]
inquiries, including eligibility.
[907]
So that is a special phone number that
you can use to answer your questions.
[912]
And remember we can't give tax or
legal advice, but for the most honest
[916]
and up-to-date real estate advice,
subscribe to this channel and make sure
[921]
you do, because we're going to have a
lot more great content coming around
[924]
the California Mortgage Relief Program,
plus the California Rental Assistance
[928]
Program and a whole lot more for buyers
and sellers and tenants and landlords.
[933]
We have a free weekly email
newsletter comes out on Sundays.
[936]
We have a link below, so
you can subscribe to that.
[939]
And make sure you check out this next
video for more on the housing market.
[943]
Thanks for tuning.
[944]
And this has been Christian Walsh real
estate agent with WIRE Associates.
[947]
And we appreciate you.
Most Recent Videos:
You can go back to the homepage right here: Homepage