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Watsonville Law Center 2012 Newsletter
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Central Coast Foreclosure Collaborative
Foreclosure Workshop
Friday, November 30, 12
Agenda
Welcome 10:00 amCan I Save My Money?
HOBOR Update / AG settlement 10:05 am Foreclosure Process 10:15 am Avoiding Foreclosure Loan Modification 10:30 am Short Sales and HAFA 10:45 amTax Consequences 10:55 amBankruptcy 11:25 amRenting 11:40 amDealing with Emotional Impact 11:45 amQ & A 12:00 pm
Friday, November 30, 12
Can I save My Home?
Friday, November 30, 12
Pamela Simmons
Attorney at LawLaw Office of
Simmons & Purdy
PinkHandouts
Friday, November 30, 12
How Can I save My Home?
• Loan Modification
• Loan Reinstatement
• Forbearance Agreement
Friday, November 30, 12
• California Settlement• A
• B
• C
• National Settlement• A
• B
• C
Attorney General Settlement
Friday, November 30, 12
Homeowner’s Bill of Rights
• Effective January 1, 2013
• A. Bars foreclosure When homeowner is working on loan modification;
• B. Requires Lender to Establish a ingle point of contact;
• C. Gives borrowes right to sue over foreclosure practices;
• D. Imposes penalties on banks for using unverified paperwork
Friday, November 30, 12
Balancing Factors
• Reasonable Rental Value of Your Home
• How Far Under Water Are You?
• Stress Factor …
• Change of Income
• Stay or go?
Friday, November 30, 12
Forbearance Agreement
• What is forbearance?▫ Agreement between lender and borrower not to foreclose
• Why ask for forbearance? ▫ To get an agreement for more time for borrower to catch up
• How do I get a forbearance agreement?▫ Call the bank and request an agreement
Friday, November 30, 12
10
Dangers of Forbearance Agreement
• Timing is STRICTLY ENFORCED
▫ NO Grace Period
• Foreclosure still lurking
▫ Could happen without further notice
Friday, November 30, 12
11
Loan Reinstatement
• What’s Reinstatement?
▫ It brings the loan current
� Including costs and fees
• Why Reinstate?
▫ To stop the foreclosure
• How Do I Reinstate?
▫ Call the bank for reinstatement demand and pay
Friday, November 30, 12
12
Options When You Can’t Save Your Home
• Foreclosure
• Short Sales
• Deeds-In-Lieu
• HAFA
Friday, November 30, 12
13
Credit Considerations
• How do YOU use your credit?
• FICO Score
• Bankruptcy
• 3-7 year consideration
Friday, November 30, 12
14
What’s a deficiency?
• Are you going to owe ANYBODY ANY MONEY after a foreclosure?
• The deficiency is money that you still owe even after you have lost ownership of the property.
Friday, November 30, 12
15
Two Separate Anti-Deficiency Rules
1. No deficiency lays where the loans were obtained to purchase the borrower’s primary residence. CCP §580b
▫ This includes 2nds, lines of credit, or any other loan obtained to purchase the home.
2. No deficiency lays where lender chooses to foreclose using non-judicial foreclosure method. CCP §580d
Friday, November 30, 12
16
Sold Out Juniors
• Non-purchase money loans where lender does not foreclosure but loan is no longer secured by property due to foreclosure by a senior encumbrance is called a “sold out junior”.
• Sold out juniors become unsecured debt with all lender having all rights to collect the debt except they can no longer foreclose. That is, they can sue in court for the debt.
Friday, November 30, 12
17
Judicial vs. Nonjudicial Foreclosure
Judicial Non-Judicial
File an action with the court Bypasses court
Both sides typically have attorneys Borrower frequently does not get an attorney
Typically takes longer Typically faster
Postsale redemption available to borrower – title not immediately
marketable
Postsale redemption not available to borrower – title immediately
marketableTypically lower sale price Typically higher sale priceTypically more expensive Typically less expensive
Deficiency judgment may be available to creditor
Deficiency judgment not available to creditor who files for foreclosure – but we aware of potential “sold out junior”
Friday, November 30, 12
18
Types of Notices
• Notice of Default and Election to Sell (NOD)
• Notice of Trustee’s Sale (NOTS)
Friday, November 30, 12
19
Notice of Default and Election to Sell
• The notice must be recorded at the County
• Civil Code section 2924b sets forth mailing, requirements of the notice of default.
▫ A copy of the notice, must be sent by registered or certified mail within 10 business days of the actual recordation.
▫ The notice must simultaneously also be sent by first-class mail at the same physical address.
Friday, November 30, 12
20
Notice of Default and Election to Sell
• Civil Code section 2924 gives specific requirements for what must be contained in the Notice of Default, including:
▫ The name of the trustor;
▫ The instrument number or book and page of the deed of trust and a description of the secured property;
▫ A declaration that a breach of the obligation has occurred that also describes the nature of the breach actually known to the beneficiary (for example, the failure to pay the January installment);
▫ An election to sell;
▫ If curable, the notice required by section 2924c(b)(1).
• Some loan or security agreements contain additional notice requirements.
Friday, November 30, 12
21
Timing of Notice of Default
• Can be recorded any time after default
• Usually recorded after a payment is 3 months late
• Once recorded -- silence for 3 months
▫ Time to request modification, short sale, deed-in-lieu
▫ Consider reinstatement, forbearance, etc., etc.
▫ Time to make plans
Friday, November 30, 12
22
Notice of Trustee’s Sale
• Timing
▫ At least 90 days after recording the Notice of Default
▫ At least 21 days before the date of sale
• Method
▫ Mail by registered or certified mail and by first class mail
▫ Post on the property; Post in one public place
▫ Publish once a week for at least 3 weeks in local newspaper
▫ Record with the county recorder (at least 14 days before sale)
Friday, November 30, 12
23
Notice of Default and Election to Sell
• The notice must be recorded.
• Civil Code section 2924b sets forth mailing, and other requirements for the notice of default.
▫ A copy of the notice, must be sent by registered or certified mail within 10 business days to any persons who have recorded requests for notice and to the trustor at the last known physical address.
▫ The notice must also be sent by first-class mail to the same physical address, and an affidavit of the mailing must be executed and retained.
Friday, November 30, 12
24
Notice of Trustee’s Sale
Civil Code section 2924f Contents
Amount of unpaid balance and estimated costs, expenses, and advances
▫ The warning specified by Civil Code § 2924f: “UNLESS YOU TAKE ACTION TO PROTECT YOUR PROPERTY, IT MAY BE SOLD AT A PUBLIC SALE. IF YOU NEED AN EXPLANATION OF THE NATURE OF THE PROCEEDING AGAINST YOU, YOU SHOULD CONTACT A LAWYER.”
▫ A description of the property
▫ The time of the sale
▫ The address where the sale will be held
Friday, November 30, 12
25
Reinstatement
• Restore loan to pre-default status
• Requires payment of amount stated in notice of default, reasonable costs and expenses, trustee and attorneys fees, and additional defaults.
• Can reinstate the loan up to 5 business days before the sale. (Civil Code 2924c(e).)
• Not all defaults are subject to reinstatement
� ie: sale of the property in violation of due-on-sale clause
� failure to make balloon payment
• If reinstated, rescission of notice of default gets recorded.
Friday, November 30, 12
26
Redemption
Civil Code §§ 2903-2906
Pay entire debt plus interest and costs
• Redemption ends when bidding at the foreclosure sale begins
• Auctioneer must sell to the highest bidder (see Civil Code §§ 2924g(a), 2924h(a)-(c).)
Friday, November 30, 12
27
Sale Process
Civil Code §§ 2924g & 2924h
• Public auction
▫ in the county where the property is situated
▫ between 9 a.m. and 5 p.m. on any business day (Monday through Friday)
• The sale begins when the auctioneer announces that the property is for sale and invites bids.
• The sale may be postponed with no additional notice. Very common.
• Anyone may bid, including the trustee (though often suspect) and beneficiary.
• Each bid is an irrevocable offer that is automatically canceled by a higher bid or by postponement or cancellation of the sale.
• Except for bids by the foreclosing beneficiary, all bids must be in cash or a cash equivalent.
Friday, November 30, 12
Friday, November 30, 12
Avoiding Foreclosure
Friday, November 30, 12
Maria Enomoto
Certified Counselor
SurePath Financial Solutions
BlueHandouts
Friday, November 30, 12
Definition • Is a permanent change in one or more of the terms of the borrower’s loan. Allows the
loan to be reinstated, and results in a payment the borrower can afford.
Investor • Is the owner of the loan. • Granting a modification is an investor's decision and is given under the investor's
guidelines.
Loan Modification
What can be changed?• Interest Rate• Extending the term of the loan • Adding missed payments to the loan balance• Balance reduction or deferment• Combination of any of the above
Friday, November 30, 12
The Making Home Affordable Program (MHA)
UP Home
Affordable Unemployment program
HAMPHome
Affordable Modification
Program
HARPHome
Affordable Refinance Program
2MPSecond Lien Modification
Program
HAFAHome
Affordable Foreclosure Alternatives
www.makinghomeaffordable.gov
The Making home Affordable programs
Friday, November 30, 12
Mortgage obtained before January 1st 2009
Amount owed on first loan up to $729,750 (single unit property)
You have a financial hardship and are delinquent or in imminent default .
You have sufficient, documented income to support a modified payment
The property has not been condemned
Eligibility
Friday, November 30, 12
Definition• Is a calculation which indicates how much an investment, such as a bond or a mortgage, is worth today.
How it’s used?• When deciding whether to modify a mortgage, investors will choose the option with the higher NPV, either the mortgage modified or left “as is.”
In HAMP• Servicers compare the NPV of the mortgage with a HAMP modification to that of the mortgage left “as is.” • If the NPV with the modification is higher than the NPV of the mortgage without the HAMP modification, HAMP servicers are required to provide the HAMP modification for eligible mortgages (subject to investor restrictions.)
Friday, November 30, 12
Affordability
HAMP reduces the payments to a reasonable percentage of the gross monthly income - Affordable housing ratio depends on the type of loan and the investors expectations.
Steps to HAMP Modification (Waterfall)
•Calculate the total amount owed.•Reduce interest rate (lowest 2%).•Extend loan term if needed (max 40 years)•Defer portion of principal, interest-free, until loan is paid off.
Home Affordable Modification Program (HAMP)
Friday, November 30, 12
Understanding the Trial Period
HAMP requires a Trial Period Plan before receiving
a permanent modification
During this period,
borrowers must submit trial
payments and all required forms and documents
Documents to verify your
eligibility before your Trial Period
Plan expires.
Friday, November 30, 12
Approved housing counseling agencies nationwide providing Loss Mitigation, Mortgage Delinquency
and Default counseling services to assist homeowners facing foreclosure.
Friday, November 30, 12
UMAUnemployment
Mortgage
MRAPMortgage
Reinstatement
TAPTransition Assistance
PRPPrincipal
Reduction
www.keepyourhomecalifornia.org
1-888-954-KEEP (5337)Friday, November 30, 12
www.IndependentForeclosureReview.comor call 1-888-952-9105
Monday through Friday, 8 a.m.–10 p.m. ET or Saturday, 8 a.m. – 5 p.m. ET.
All Requests for Review Forms must be postmarked no later than December 31st, 2012.
Friday, November 30, 12
Friday, November 30, 12
Short Sales and HAFA
Friday, November 30, 12
Pamela Simmons
Attorney at LawLaw Office of
Simmons & Purdy
PinkHandouts
Friday, November 30, 12
43
What is a Short Sale?
• A “Short Sale” is when the lender or lenders who are secured by a property agree to take less than the full amount owed.
• A “Short Sale” needs agreement of:
✤ 1) Homeowner
✤ 2) All Lenders secured by the property.
Friday, November 30, 12
44
Short Sales
• If agreement is reached with Lender(s), the Lender will pay the real estate agent and other closing costs.
• C.C.P. 580 e is new “anti-deficency” statute which protects homeowner from bank coming after them for any short fall!!
• Be sure to get competent legal advice before signing short sale agreement with lender.
• Lender will issue 1099-C
Friday, November 30, 12
45
Short Sale WARNINGS
• If you have more than one loan on the property, you need to make certain that you’re released from all the liability on the property.
•What’s in it for you? Why are YOU doing a short sale?
▫ Realtors encourage short sales
▫ Credit benefit
▫ May qualify for buying new house 3 years after
Friday, November 30, 12
46
Deeds-In-Lieu of Foreclosure
• A transfer of the property using a deed back to the lender.
• Must have lender’s agreement.
• Generally not available if there is more than one loan on the property.
• Historically lender pays borrower a few thousand dollars. (see HAFA)
Friday, November 30, 12
47
33Home Affordable Foreclosure Alternatives Program (HAFA)
• Announced May 2009 as companion for HAMP (Making Home Affordable Program)
• HAFA gives incentives and Procedures for short sales and deeds-in-lieu (except FHA or VA loans)
• Allows smooth transition from denial under HAMP to short sale or deed–in-lieu
Friday, November 30, 12
48
HAFA Benefits
• Releases borrower from liability from participating lenders
• Lender sets sales price in advance
• Sets specific time lines for sale
• Eligibility same as HAMP
• Homeowner may get cash payment
Friday, November 30, 12
49
Letting Go of the House – What to Pay?
• Pay
▫ Homeowner’s insurance
▫ Homeowner’s Association Dues
• No need to pay:▫ Property Taxes
▫ All your loans (ie: don't keep paying a junior loan when you've stopped paying the first and vice versa.)
Friday, November 30, 12
Friday, November 30, 12
Tax Consequences
Friday, November 30, 12
Bill Purdy
GreenHandouts
Attorney at LawLaw Office of
Simmons & Purdy
Friday, November 30, 12
53
Tax Consequences
1. Capital Gain/Loss
2. Cancellation of Indebtedness – forgiven debt can be treated as income to client
Non recourse v. Recourse Debt
Friday, November 30, 12
54
Ways to avoid cancellation of debt income:
1. Non-Recourse debt;
2. Bankruptcy;
3. Insolvency;
4. Qualified Principal Residence Indebtedness
Friday, November 30, 12
55
1099-A FORM
Friday, November 30, 12
56
1099-C FORM
Friday, November 30, 12
57
Form 982
Friday, November 30, 12
Friday, November 30, 12
Bankruptcy
Friday, November 30, 12
Sandra Caruba
Attorney at LawLaw Office
of Sandra L. Caruba
Friday, November 30, 12
61
California Foreclosure Filings September 2011 – September 2012
Friday, November 30, 12
62
Inventories September 2011 – September 2012
Friday, November 30, 12
63
How Bankruptcy Works
• Filing ▫ Full disclosure ▫ Exempt property
• The Automatic Stay▫ Stops creditor phone calls▫ Stays foreclosure
• Purpose - the “Fresh Start”▫ Discharge: secured v unsecured debt▫ Taxes: COI, non-priority
Friday, November 30, 12
6465
Types of Bankruptcy
• Chapter 7 – “Liquidation”
• Chapter 13 – “Payment Plan”
• Chapter 11 – “Reorganization”
Friday, November 30, 12
6566
▫ Available in Chapter 13 (and 11) cases
▫ Home Equity Lines and Second Deeds of Trust
▫ Effect - removes liens with zero value
� Must be completely underwater - no equity for lien
� Requires a Motion and sometimes an Appraisal
▫ Lien is not “stripped” until case is final
▫ Generally not available in Ch 7 for personal residence
Lien Stripping( Need Non-technical term)
Friday, November 30, 12
6667
• How long does filing bankruptcy take?
▫ Petition preparation
▫ Discharge
� Chapter 7
� Chapter 13
• How will it effect my credit?
• What are the costs – attorney and other fees?
▫ Chapter 7
▫ Chapter 13
Practicalities
Friday, November 30, 12
Friday, November 30, 12
Renting
Friday, November 30, 12
Phyllis Katz
BeigeHandouts
Attorney at LawCalifornia Rural Legal
Assistance, Inc.
Friday, November 30, 12
•The former homeowner who remains in possession
after a foreclosure sale is not a tenant, but the eviction
procedure is similar.
•Why Eviction?
▫Eviction is the process through which the new owner
gets possession of the property.
Eviction
Friday, November 30, 12
2• AFTER the bank or a third party takes ownership of the property at sale:
▫ The (former) owner receives 3 day Notice to Vacate
▫ After 3 days, purchaser at the Trustee’s Sale can file eviction (Unlawful Detainer complaint) at the courthouse.
▫ Resident has a right to be served with the papers.
▫ 5 Day Summons
▫ Resident can file response in court within the 5 days after service
▫ Trial within 20 Days until trial after Plaintiff files request for trial setting
▫ Former homeowner has few defenses
▫ If no Answer filed or Resident loses at trial:
Friday, November 30, 12
3
3
• Sheriff posts a 5 day notice to vacate (with 15 days to remove property)
• Sheriff returns after the 5 days for “lock-out.”
• After “lock out,” 15 days to remove belongings after judgment. Storage
charges apply.
• New owner might negotiate a “Cash for Keys” deal with the former
owner.
Friday, November 30, 12
4
• Protecting Tenants in Foreclosure Act – Tenants are entitled to receive
90 days Notice to Vacate
• 60 Day Right under CA law now; 90 days after 1/1/2013" CCP §1161b
• Lease Holders
• Security Deposit
• Cash for Keys
Friday, November 30, 12
5
“Bona Fide” Tenants have 90 days to move
� Tenant is NOT the owner or a child, spouse or parent of an owner
� Lease or tenancy is the result of an “arm’s length” transaction.
� Rent is not substantially lower than fair market value.
Friday, November 30, 12
6
• These are paying tenants.
• They live in a separate unit on the property (“This section shall not apply if any party to the note remains in the property as a tenant, subtenant, or occupant”)
• Broader definition of “tenant” than under PTFA
▫ (Tenant can include a close family member.)
• Notice must be posted: Civil Code 2924.8 (valid until 12/31/2019)
Friday, November 30, 12
7
• Tenant who has a lease for more than 30 days can remain in property
after foreclosure until end of lease or the end of the notice period,
whichever is longer
▫ HOWEVER, tenant can be issued a 90 day notice if:
� (1) The purchaser or successor in interest will occupy the housing unit as a
primary residence.
� (2) The lessee is the mortgagor or the child, spouse, or parent of the
mortgagor.
Friday, November 30, 12
� (3) The lease was not the result of an arms’ length transaction.
� (4) The lease requires the receipt of rent that is substantially less than fair market
rent for the property, except when rent is reduced or subsidized due to a federal,
state, or local subsidy or law.
� (c) The purchaser or successor in interest has the burden to prove that a fixed-term
residential lease is not entitled to protection under subdivision (b). (Civil Code
§2924.8, 1161b)
• Both the former owner and the new owner after foreclosure sale are
responsible for returning security deposit to tenant
Friday, November 30, 12
8
• New owner might offer Cash for Keys as incentive for tenant (or former
owner) to vacate sooner or without litigation
▫ Amount and length of time are negotiable
▫ Terms and conditions are negotiable
▫ Knowing one’s rights is imperative to deciding whether to accept a Cash for Keys
offer
▫ After end of notice period or Cash for Keys deadline, purchaser at the
Trustee’s Sale can file eviction (Unlawful Detainer complaint) at the
courthouse.
Friday, November 30, 12
9
9
▫Resident has a right to be served with the papers.
▫5 Day Summons
▫Resident can file response in court within the 5 days after service
▫Trial within 20 Days until trial after Plaintiff files request
▫Tenant can raise defenses
▫If no Answer filed or Resident loses at trial
� Sheriff posts a 5 day notice to vacate (with 15 days to remove property)
� Sheriff returns after the 5 days for “lock-out.”
� After “lock out,” 15 days to remove belongings after judgment. Storage charges apply.
Friday, November 30, 12
Friday, November 30, 12
Neil D. Brown
Licensed Clinical Social Worker
Friday, November 30, 12
Friday, November 30, 12
83
Break
Friday, November 30, 12
Central Coast Foreclosure Collaborative
Post-Foreclosure Workshop
Friday, November 30, 12
Agenda
Welcome / Brief Overview of the Day 1:00 pm
Credit Recovery 1:10 pm
Financial Literacy and Empowerment 1:20 pm
First Time Homebuyer programs, Workshops and Pre- Purchase Counseling 1:35 pm
Q & A 1:50 pm
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86
Financial Literacy and Empowerment
Friday, November 30, 12
Irma Ranzuglia
Financial Educator and Coach
Santa Cruz Community Credit Union
Friday, November 30, 12
Maria Enomoto
Certified Counselor
SurePath Financial Solutions
Friday, November 30, 12
89
Financial Literacy
Definition:Is the set of skills and knowledge that allows an individual to make informed decisions through
their understanding of finances.
Friday, November 30, 12
90
Financial Literacy
Importance:
Understanding personal finance and possessing the discipline to budget enables consumers to have the money they need to meet their personal
goals in life and remain under control of their finances.
Friday, November 30, 12
Unexpected
Expenses
Starting/Losing a
JobStarting a Business
Buying a House
Marriage/ Divorce
Death of family
memberCollegeBirth/
Adoption Retiring
Life Events
Friday, November 30, 12
Financial Literacy
• Spending Plans• Managing Debt and Credit• Dealing with Mortgages• Planning for Retirement• Saving and Investment• Getting Loans • Getting Insurance• Knowing your rights
Friday, November 30, 12
Friday, November 30, 12
Firs Time Homebuyer Programs
Friday, November 30, 12
Monica Jimenez
Housing Counselor
Housing Resource Center of Monterey County
Friday, November 30, 12
96
HRC Homeowner Services
HRC Homeowner Services include FREE
Workshops and one-on-one counseling
1. Debt and Delinquency Counseling
2. Foreclosure Prevention
3. Pre-purchase
4. Post Purchase
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97
First time Home Buyer Programs
• Neighborhood Stabilization Program (NSP)
• City of Salinas, FTHB Program (Down Payment Assistance Program)
• CalFHA
• HUD – Section 8 Housing Choice Voucher Program
• County of Monterey FTHB Program
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98
The NSP opportunity is available only through the Housing Resource Center, working with the:
County of MontereyCity of Salinas
Call your local City or County for participation
Neighborhood Stabilization ProgramsNSP
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“is to revitalize and stabilize communities”
NSP includes program acquisition and rehabilitation of foreclosed homes in neighborhoods that have been impacted by a high rate of foreclosure, in order to promote neighborhood stabilization.
NSP also provides financial assistance for low, moderate and middle income households interested in purchasing these homes.
The Goal of NSP
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100
NSP funds can ONLY be used to purchase property:
• which has been foreclosed upon
• 2% out of pocket for closing
• is a single family dwelling
• has been vacant for 90 days
• was constructed after January 1, 1978
• is not located on a FEMA-designated Special Flood Hazard Area
• can be acquired at a minimum 1% discount of fair market value
• can be priced for resale to a Buyer at an “affordable” price, not to exceed $325,000.
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NSP AffordabilityLoan Term of Affordability
Loan Amount TimeNo financial assistance to purchase a NSP acquired
property 5 years
Less than $15,000 5 years$15,000-$40,000 10 years
More than $40,000 15 years
The sale price of the home during the affordability period is described in the “Property Sale Price to Homebuyers” section of
the full NSP Administrative Manual.
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1. Be a U.S. Citizen or be a legal U.S. Resident (have legal immigration status)
2. Qualify as a low- or moderate-income household, having a household income that is less than 120% of area medium income
NSP Homebuyer Eligibility
To purchase an NSP property, an applicant must meet ALL of the following criteria:
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103
NSP Homebuyer Eligibility
3.- Have completed a qualified Homebuyer Education course from a HUD
approved housing counseling agency.
HRC provides the NSP-required homebuyer counseling and education.
HRC also certifies the income eligibility of potential NSP homebuyers.
4.- Be pre-approved for a permanent loan from a bank.
5.- Meet the County’s or City of Salinas’ underwriting criteria.
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104
FY 2012 Monterey County Income limits
1 Person 2 Persons 3 Persons 4 Persons 5 Persons
30% $14,550 $16,600 $18,700 $20,750 $22,450
50% $24,250 $27,700 $31,150 $33,900 $37,400
80% $37,750 $44,300 $49,850 $53,350 $59,800
100% $47,500 $54,300 $61,100 $67,100 $73,300
120% $57,000 $65,160 $73,320 $81,360 $87,960
Friday, November 30, 12
City of Salinas
First Time HomebuyersDown Payment Assistance
Program
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106
The goal of the DPA program
“Assist qualified low income households enter the housing market”
The DPA program will help help with a low-interest deferred loan for down payment on first home buyers.
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Eligibility Criteria
• Be First home buyers
• Have an income not exceeding 80% of median income.
• Make a minimum payment of 3% of the purchase price and pay closing costs.
• Get a Pre-approval
• House price not to exceed $ 325,000
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DPA requirements
• The buyer must occupy the property as primary residence during the term of affordability.
• The property can only be occupied by a single family.
• Property must be located in Salinas
•Applicants must be residents or work in Salinas for a period not less than two years
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CAL FHA
California Homebuyer's Downpayment Assistance Program (CHDAP)
• Offers a deferred-payment subordinate loan in the amount of (3%) of the purchase price or appraised value, which ever is less to be used for down payment and/or closing costs.
Individual Development Accounts
• IDA's are special savings accounts designed to assist low income borrowers on their path toward ownership of a long-term asset, such as a home, through matched contributions by nonprofit organizations and eligible banks. These organizations may offer up to a 3:1 savings match (i.e., if you save $1,000, you will receive an additional $3,000). http://www.calhfa.ca.gov/homebuyer/programs/index.htm
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HUD - Section 8 Housing Choice Voucher Program
• The Section 8 Housing Choice Voucher Program may enable qualified first-time homebuyers to receive monthly assistance for homeownership expenses in lieu of monthly rent aid. Pursuant to Congressional authority, HUD has authorized states and Public Housing Authorities (PHA's) to provide this assistance using funds available through the Section 8 rental voucher program.
Contact your local Housing Authority for participation
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Housing Resource Center of Monterey County
Housing Resource Center of Monterey County
134 E. Rossi StreetSalinas, CA 93901
Office: (831)424-9186Fax: (831)757-7184
www.hrcmc.org
Follow HRC on Facebook or twitter @HRCMonterey for news, free workshops, and housing updates!
Friday, November 30, 12
Resources
Friday, November 30, 12
Resources
http://www.co.monterey.ca.us/EconomicDevelopment/housing-first time-home.shtml
http://portal.hud.gov/hudportal/HUD?src=/topics/buying_a_home
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