Applying For Mortgage Relief: A Step-By-Step Guide

The COVID-19 pandemic has left many homeowners struggling to keep up with their mortgage payments. In response, several states have launched mortgage relief programs to provide support. For example, California has introduced a program that offers free one-time payments of up to $80,000 to eligible homeowners. Similarly, New Jersey has allocated $325 million in federal funding to assist homeowners facing financial hardship due to the pandemic, with eligible homeowners able to receive up to $35,000 in aid. This article will explore the application processes for these mortgage relief programs and outline the requirements that applicants must meet to qualify for assistance.

California Mortgage Relief Program

The California Mortgage Relief Program provides grants of up to $80,000 to California homeowners who are experiencing financial hardship. The program was created in response to the COVID-19 pandemic, which caused financial difficulties for many Americans.

To be eligible for the program, you must meet the following criteria:

• You must be a California homeowner and be currently behind on mortgage payments or property taxes, or have a partial claim or deferred balance.
• Your household income must be at or below 150% of the Area Median Income (AMI) for your county. You can check your county's AMI on the California Mortgage Relief Program's AMI Calculator.
• You must own and reside in a single-family home, condo, or manufactured home in California.
• You must have experienced a pandemic-related financial hardship after January 21st, 2020, in the form of a loss of income or an increase in household expenses.
• Your mortgage loan must meet the program's origination date and principal balance requirements.

To apply for the California Mortgage Relief Program, you can follow these steps:

• Visit the program's website, CAMortgageRelief.org, and click on the "Apply Now" button.
• Complete the short questionnaire, which will take you to the application.
• You will have 30 days to submit the application and gather all the required documents, including a mortgage statement, bank statements, utility bills, and income documentation (such as pay stubs or tax returns).
• Upload all the required documents, ensuring they are clear and legible.
• Review your application for any errors or missing information.
• Submit your application electronically.
• You can track the status of your application through the online portal or by calling the contact center at 1-888-840-2594.

Application requirements

The California Mortgage Relief Program offers free one-time payments to homeowners who are behind on their housing bills due to the financial consequences of the COVID-19 pandemic. The program is funded through the 2021 American Rescue Plan Act, and applicants can receive up to $80,000 through the $1 billion program.

To apply for the California Mortgage Relief Program, applicants must complete a short questionnaire on the mortgage relief program application page. Once the questionnaire is completed, applicants have up to 30 days to submit the application. This grace period is intended to allow applicants to collect the necessary documents and other requirements. These documents include a mortgage statement, bank statements, utility bills, and a form of income documentation (e.g. pay stubs or tax returns). Depending on the application, applicants may also need to provide proof of a "workout option" denial. If the applicant is in active bankruptcy, they must provide a letter from the servicer and trustee that can collect on the funds for past due mortgage payments.

To be eligible for the program, applicants must own or reside in a single-family home, condo, or permanently affixed manufactured home in California. Additionally, applicants must earn less than half of their county's average household income (Area Median Income), which can be checked using the California Mortgage Relief Program's AMI Calculator. Applicants must also meet at least one of the following requirements: homeowners with reverse mortgages who are falling behind on property tax or insurance can receive assistance through the program.

Eligibility criteria

California Mortgage Relief Program

The California Mortgage Relief Program was funded through the 2021 American Rescue Plan Act and provides up to $80,000 in free one-time payments to eligible homeowners. To be eligible for this program, applicants must:

• Own or reside in a single-family home, condo, or permanently affixed manufactured home in California.
• Earn less than half of their county's average household income (Area Median Income). Applicants can check their county's AMI on the California Mortgage Relief Program's AMI Calculator.
• Meet at least one of the following additional requirements:
• Have a reverse mortgage and be falling behind on property tax or insurance.
• Have missed payment deadlines.

New Jersey Emergency Mortgage Relief Program

The New Jersey Emergency Mortgage Relief Program provides up to $35,000 in aid to eligible homeowners. To be eligible for this program, applicants must:

Be a New Jersey homeowner with a demonstrated COVID-19-related financial hardship occurring after January 20, 2020.

It is important to note that eligibility criteria may change over time, and there may be additional requirements or restrictions for each program. It is always best to review the official program guidelines and consult with a qualified professional or the program administrators to determine your eligibility for any mortgage relief program.

Application process

The application process for mortgage relief typically involves several steps and requires specific documentation. Here is a detailed guide on what to expect and how to navigate the process:

Step 1: Identify the Relief Program

The first step is to identify the specific mortgage relief program that you are eligible for and wish to apply for. There are various federal and state-level programs, such as the Home Affordable Modification Program (HAMP) or the Homeowner Assistance Fund (HAF), each with its own criteria and application process.

Contact information

If you are in the UK, the first step you should take is to contact your lender. Your lender can discuss your options and offer suggestions. You can also contact Shelter, National Debtline, or StepChange if you are at risk of eviction, or free debt advice charities if you are struggling with debts. The Housing Loss Prevention Advice Service can help if you live in England or Wales and are at risk of being evicted from your property if your mortgage is in arrears.

If you are in the US, you can call 855-698-7627 to speak to a trained team member at U.S. Bank. You can also call the Default Counseling team Monday through Friday, 7:00 a.m. to 8:00 p.m. (CT), and Saturday, 8:00 a.m. to 2:00 p.m. (CT). For free or low-cost general advice about buying a home, renting, default, or avoiding foreclosure, contact a housing counsellor at the U.S. Department of Housing and Urban Development (HUD).

If you are a homeowner in California, you can apply for the California Mortgage Relief Program. You can reach the program by phone at 1-888-840-2594, or by email at [email protected]. Homeowners with questions can also contact U.S. Housing and Urban Development-certified housing counsellors at 1-800-569-4287.

Frequently asked questions