The following are brief summaries of the programs CalHFA will implement under the Keep Your Home Program:

Unemployment Mortgage Assistance (UMA) – Intended to assist homeowners who have experienced involuntary job loss. CalHFA will provide temporary financial assistance in the form of a mortgage payment subsidy of varying size and term to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems. These funds could provide up to six months of benefits with a monthly benefit of up to $1,500 or 50% of the existing total monthly mortgage, whichever is less.

Mortgage Reinstatement Assistance Program (MRAP) – Intended to assist homeowners who have fallen behind on their mortgage payments. CalHFA will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds will provide benefits of up to $15,000 per household or 50% of the past due amount, whichever is less, with a required dollar-for-dollar contribution match from the lender, servicer, insurer and/or borrower.

Principal Reduction Program (PRP) – Intended to assist homeowners who have severe negative equity. CalHFA will provide capital on a matching basis with participating financial institutions to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced to market levels needed to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program should most likely be a prelude to loan modification.

Transition Assistance Program (TAP) – Intended to assist homeowners with relocation assistance when it is determined that they can no longer afford their home. CalHFA’s transition assistance will be used in conjunction with servicer/investor short sale and deed-in-lieu of foreclosure programs in order to help borrowers transition into stable and affordable housing. Borrowers will be responsible to occupy and maintain the property until the home is sold or returned to the lender as negotiated. Funds will be available on a one-time only basis.

Think you may be eligible? Check out the eligibility requirements to learn more.

If a short sale is a better option for you, remember I am a Certified Distressed Property Expert as well as a Short Sales and Foreclosures Resource. I have the experience and knowledge to help you navigate through your options. Give me a call today if you’d like to discuss whether or not you may qualify for a short sale.

State lawmakers approved the bill late last week. The bill, SB 401, by Sen. Lois Wolk (D-Davis), bans state taxes on up to $500,000 in forgiven mortgage debt and also prevents the state from taxing federal stimulus funds as additional business income when steered to renewable energy firms.

The state Franchise Tax Board estimates approximately 100,000 Californians will be spared from $34 million in state taxes through 2012 as a result of the new law.

The tax relief plan only applies to people who lost homes in which they actually lived. According to the Franchise Tax Board, investors are not beneficiaries of the tax break and still must pay state taxes on the forgiven debt. State officials say qualified taxpayers don’t have to do anything to get the tax break. Those who qualify for federal relief will automatically get the state relief.

Day 7: CONSIDER CURB APPEAL

Make the most of your home’s appearance without breaking the bank. You can add value and appeal to your home with just a few simple ideas. While repainting your whole house may be out of the question, painting the door and retouching the trim can give your entire house a face lift.

You don’t have to go crazy with landscaping to add appeal to your yard. Simply cut back overgrown shrubs and bushes and remove old patio furniture. De-cluttering and cleaning the yard can make a big difference.It is also a good idea to thoroughly clean patios and walkways of dirt and debris. Renting a power washer from your local hardware store or using a diluted bleach solution and a scrub brush  can make your patio and walkways look refreshed. Go a little further and plant a few colorful flowers to add value and appeal to your home without spending a lot of money.

Missed a day? Look back on all the great, money-saving ideas to give your house a face lift you can afford!

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

Old and historic houses are notorious for their lack of closet space. If you have cramped storage areas, add do-it-yourself wire and laminate closet systems to bedrooms, pantries and entry closets. Companies such as ClosetMaid allow you to measure and redesign your closets online. You can also get design details and parts for these systems at many large home-improvement stores, like Home Depot. Most closets can be updated in a weekend or less. In the end, your closets will be more functional while you’re living in the house and will make your home look more customized to potential buyers if you ever decide to sell.

Check Back Tomorrow for…

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

New paint makes everything look clean and bright again and, thanks to “oops” paint, can be as affordable as a dollar a can. “Oops” paint is paint that was purchased and returned because it was the wrong color is available at both Home Depot and Lowes. If you don’t find a color you like, return the next week for a completely different selection. Even painting the trim a contrasting color or creating a contrast wall can make a big impression with just a little effort and money.

Carpeting is another detail that can quickly update a home and make it look cleaner. A professional carpet cleaning is an inexpensive investment, especially if your rugs are in good shape and are neutral colors. If your carpet is showing serious wear, cover it with inexpensive, strategically placed area rugs.

Slipcovers can also easily cover furniture that is worn or discolored. Don’t be afraid of slipcovers; they’re not the same as ten years ago when they looked like a loose blanket awkwardly hugging your sofa. There are many slipcovers now available that fit and stay in place.

Check Back Tomorrow for…

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

Changing the lighting in your home can both update and make your house appear bigger and more open.

Adding accent lighting and spotlights that plug into existing outlets can direct light to features you want to emphasize, like art or plants, while giving your home overall ambient light. If you have a ceiling fan, you can also buy replacement fan blades to update the fixture’s look at a much more minimal cost than replacing the entire fixture.

Outdated lamp shades can make a room feel stale and are easy to replace. For a more modern feel, replace your pleated shades with simple drum-shaped ones. They’re not only more modern looking but also easier to keep clean and dust-free. Replacing traditional lighting with statement lighting, such as a chandelier in the bedroom, can quickly update the entire room and change its level of sophistication.

Using mirrors to expand and reflect light is a great trick to add light to dark rooms and make small rooms appear larger. Hang a mirror where it reflects light from a window and your whole room will light up with natural light. Using lighter and warmer colors and fabrics also make your room appear much brighter.

Check Back Tomorrow for…

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

Day 3: UPDATE THE BATHROOM

Next to the kitchen, bathrooms are often the most important rooms to update. Simple things that are relatively easy to install, like a new toilet seat and a pedestal sink, can make a big difference.

Refinishing the cabinets can update a dated bathroom, as well as adding new hardware to the drawers and doors. A new sink faucet easily serves as a focal point that adds a more modern feel. Replacing old, dated light fixtures can be done relatively easily and can change the whole look of the bathroom.

You can replace an old bathroom floor with easy-to-apply vinyl tiles or a sheet vinyl for very little cost and minimal effort. If your tub and shower look dingy, consider regrouting the tile and replacing any chipped tiles. A more complete make-over is a prefabricated tub and shower surround. While these one-piece units often require professional installation, they are still usually cheaper than paying to retile the walls and refinish the tub.

Check Back Tomorrow for…

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

First impressions are important, especially when it comes to your home. Your entryway is the first thing you and your guests see when entering your home. With a little money and effort, you can spruce up your entrance and help your home make a great first impression!

The front door is the focal point of your entrance and can be inexpensively made to look new with a new coat of paint or easy refinish. Replacing the worn, flimsy knob with a more substantial (and secure) handle-and-lock set gives the entrance a polished feel.

Consider adding two large planters on either side of the door filled with plants of a variety of heights and textures. For a great year round look, mix perennials and  annuals. If you want to add another personal touch, hang a coordinating wreath on your front door.

Don’t have a penny to spend? You’ll be amazed how much of a difference an hour of cleaning can make to the look and feel of your entry area. Getting rid of winter’s dirt and twig remainsdeclutters and brightens up your space to give it a more inviting feel.

Check Back Tomorrow for…

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

Day 1: GET STARTED IN THE KITCHEN

For many, the kitchen is the heart of the home. Updating the hardware on your cabinets can modernize your kitchen while keeping costs down. For only a little more, a new, coordinating kitchen faucet set and new light fixtures can transform the look and feel of the entire kitchen.

Rather than replacing, consider resurfacing your cabinets. A fresh coat of paint or lacquer can bring old cabinets back to life. If you’re looking to spend a little more, many companies will refinish the cabinet boxes and replace the doors and drawers from the cabinets for substantially less than new cabinets.

If your kitchen appliances don’t match, don’t replace them. Instead, order new doors or panels from the manufacturer. Many dishwasher panels are white on one side and black on the other, so it may be as simple as removing the screws and flipping the panel.

Check Back Tomorrow for…

Day 1: GET STARTED IN THE KITCHEN

Day 2: MAKE A MEMORABLE ENTRANCE

Day 3: UPDATE THE BATHROOM

Day 4: LET THERE BE LIGHT

Day 5: MAKE THE OLD LOOK NEW

Day 6: DE-CLUTTER AND CREATE STORAGE

Day 7: CONSIDER CURB APPEAL

It talks about the fact that many homeowners who are currently defaulting on their mortgages, may be surprised to learn that, years from now, they may still owe that money to someone…the debt collectors may come calling!

The article goes on to do an excellent job of explaining exactly how this can happen, and I won’t regurgitate the information here, but I would recommend that you read the article yourself.

Toward the end of the article is the following paragraph to which I’d like you to pay special attention: “In many short sales, experienced real estate agents or attorneys can negotiate away debt obligations for the second-lien loan. But many inexperienced borrowers don’t know that, and sign final-hour agreements giving lenders the right to pursue them later.”

Please, please, please don’t make the mistake of thinking you don’t have options! Call a real estate professional or an attorney who is specially trained in the area of short-sale negotiations so that you don’t find yourself among the many who will be receiving calls from debt collectors years from now…collecting on a debt that should have already been resolved! I hold both the CDPE and SFR designations…let me help.