California's Keep Your Home program helps Sacramento residents
In 2010, President Obama announced his plan to provide funds to the states that were hit hardest by unemployment and foreclosure rates, which was of special importance to those who owned Sacramento real estate. California was one of the five initial states chosen by the U.S. Treasury Department for the "Hardest Hit" plan, and the California Housing Finance Agency used a portion of the $2 billion received to begin the Keep Your Home California program.
The program was set up to help families falling behind on mortgage payments and ultimately reduce the amount of foreclosures in California. Although many argued that the eligibility requirements were too narrow for many to participate, the program states it is for both low and moderate income households and that the home must be valued at less than $729,000.
The median home in Sacramento County costs $346,900, according to the U.S. Census Bureau, and the median family income is approximately $56,000. This means that the majority of Sacramento residents meet the necessary requirements to benefit from this initiative.
The Sacramento Bee reports that 760 Sacramento homeowners within the greater Sacramento area were helped by the Keep Your Home program. Program director Diane Richardson told the news source that she feels more families will be able to receive assistance as more banks and lenders agree to participate in the program, a promising prognostication for both current and prospective residents.