California homeowners who are behind on their mortgage payments due to the pandemic, or whatever, are about to receive up to $80,000 per household in the form of a direct payment to mortgage servicers.
The $1 billion program funded by taxpayers – as opposed to making homeowners tap into the massive equity gained in their homes while they weren’t making payments – was approved by the US Department of the Treasury, and will apply to as many as 40,000 struggling homeowners according to a statement from 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,” it reads. “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.”
Newsom noted that renters and landlords had already received assistance.
“Now, with our California Mortgage Relief Program, we are extending that relief to homeowners,” he said.
The funding, which is allocated through the federal American Rescue Plan Act’s Homeowner Assistance Fund, is provided as a one-time grant that qualified homeowners will not be required to repay.
Californians at or below 100% of their county’s area median income, who own a single-family home, condo or manufactured home, and who faced pandemic-related hardships after Jan. 21, 2020, may be eligible for the program. –Sacramento Bee
Will those who didn’t over-commit themselves in the first place receive tax credits?
Once again, moral hazard FTW.
Continue: Zerohedge.com
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