Program Aims To Help Struggling California Homeowners
SACRAMENTO (KCBS) – The state's largest initiative to date to assist struggling homeowners is up and running.
The $2 billion effort called "Keep Your Home California" is funded by federal government TARP funds and is administered through the state.
"We're really excited to be able to roll this out," said program manager Diane Richardson.
KCBS' Margie Shafer Reports:
She said three programs offer mortgage assistance and one is for principal reduction.
"For every dollar that we pay, we're requiring banks to match, dollar for dollar, and to lower the borrower's principal," said Richardson.
Norma Torres, the chair of the Assembly Committee on Housing and Community Development, said dealing with bank bureaucracy has been frustrating.
"We don't have Freddie Mac and Fannie Mae on board and it makes it very difficult to get the banks on board when these two organizations are not on board," Torres said.
The programs are designed to help up to 100,000 struggling California homeowners.
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