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Old 03-08-2010, 10:31 AM
 
Location: Norcross GA
983 posts, read 4,433,982 times
Reputation: 469

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Found this article about a state program that has received funding. Hopefully it will help someone save their home. Even though it says PA, in the article CA has received funding also.


Pennsylvania helps jobless residents pay their mortgages - Yahoo! Finance (http://finance.yahoo.com/news/Pennsylvania-helps-jobless-hmoney-3417196184.html?x=0 - broken link)
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Old 03-08-2010, 04:15 PM
 
Location: California
37,074 posts, read 42,038,193 times
Reputation: 34885
I wonder...it's another loan payment on top of your other bills so I don't see this working for people who were already stretching unless they find a new job that pays quite a bit more than their old one. What happens if people default on this new loan?
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Old 03-08-2010, 04:47 PM
 
Location: Sacramento
14,044 posts, read 27,141,059 times
Reputation: 7373
Quote:
Originally Posted by Ceece View Post
I wonder...it's another loan payment on top of your other bills so I don't see this working for people who were already stretching unless they find a new job that pays quite a bit more than their old one. What happens if people default on this new loan?
This provision from the article may answer your question:

Loan payments are made directly to the servicers and a lien is placed on the property. The aid is repaid at a 5.25% interest rate over 10 years on average, though the borrower's financial circumstances are taken into account.

I'm assuming this means that some of the loan may end up being forgiven.
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Old 03-08-2010, 05:06 PM
 
Location: California
37,074 posts, read 42,038,193 times
Reputation: 34885
Quote:
Originally Posted by NewToCA View Post
This provision from the article may answer your question:

Loan payments are made directly to the servicers and a lien is placed on the property. The aid is repaid at a 5.25% interest rate over 10 years on average, though the borrower's financial circumstances are taken into account.

I'm assuming this means that some of the loan may end up being forgiven.
Well that blows. Although the lack of actual detail makes it too sketchy for me to say for sure.
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Old 03-11-2010, 12:07 AM
 
Location: Norcross GA
983 posts, read 4,433,982 times
Reputation: 469
Oh Ceece I can assure you the qualifying process is probably worst than having all your teeth pulled without numbing meds!! : ) I think I read somewhere in it that it said it's only for those that are going to be employed again in a short time and able to get back on track with their mortgage. But maybe someone will qualify for it.
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