More California homeowners now eligible for COVID mortgage relief

More struggling California homeowners now qualify for mortgage relief, after the state on Tuesday expanded a COVID-19 program designed to help those who have fallen behind on their payments during the pandemic.

Homeowners who missed payments this year now are eligible for aid that previously was offered only to those who missed at least two payments before Dec. 27, 2021. The funds also now can be used to help with past-due property taxes, even for those whose mortgage payments are current, or for those who own their homes outright. And the state has upped the income limit to qualify — homeowners now are eligible for assistance if they make 150% or less of their county’s median income.

“So many Californians saw their household finances impacted by the COVID-19 public health emergency and are continuing to grapple with the economic fallout,” Lourdes Castro Ramírez, secretary of the California Business, Consumer Services and Housing Agency, said during a news conference over Zoom. In fact, about 10 percent of California homeowners are not confident, or are only slightly confident, that they’ll make next month’s mortgage payment, she said, citing statistics from the U.S. Census Bureau.

Homeowners who missed at least two mortgage payments before June 30 now may be eligible to have delinquent payments of up to $80,000 covered. But eligibility depends on a household’s income.

Homeowners who are caught up on mortgage payments or who own their homes outright, but who have fallen behind on property taxes, now are eligible for up to $20,000 in relief if they’ve missed at least one tax payment before May 31. Before the expansion, only property owners who were behind on their mortgage or had a reverse mortgage were eligible for property tax help.

The news comes as inflation and recordsetting gas prices have left people in the Bay Area and across the nation scrambling to afford essentials and pay their bills.

There is no deadline to apply for the program, but the state urges homeowners to get their applications in as soon as possible, either by visiting Camortgagerelief.org or calling 888-840-2594.