The new California Mortgage Relief Plan will help to as many as 40,000 struggling homeowners by making a direct payment to the mortgage servicers.
The United States Department of the Treasury has approved California’s plan to provide $1 billion in mortgage relief, allowing the California Mortgage Relief Plan to provide help to as many as 40,000 struggling homeowners, according to a statement from Gov. Gavin Newsom’s office.
“We are committed to supporting those hit hardest by the pandemic, and that includes homeowners who have fallen behind on their housing payments,” Newsom said in a statement. “No one should have to live in fear of losing the roof over their head, so we’re stepping up to support struggling homeowners to get them the resources they need to cover past due mortgage payments.”
Past due housing payments, up to $80,000 per household, will be covered by a state grant directly paid to the mortgage servicers' of qualifying homeowners, ABC10 reports. Homeowners in California who wish to receive the assistance must be at or below 100% of their county's Area Median Income. Applicants for the grant must also own a single-family house, condo, or manufactured home and have faced a financial hardship deemed to be pandemic-related after January 1, 2020.