Home Foreclosure Mortgage relief for Californians after pandemic hardship

Mortgage relief for Californians after pandemic hardship


the California Mortgage Relief Program is open to people who have fallen behind on their housing payments, due to pandemic-related hardship. People can access the app here.

Sadie Weller, staff attorney at the San Luis Obispo Legal Assistance Foundation, told KSBY: “So far, 1,300 families have been assisted. The program’s goal was to help between 20,000 and 40,000 homes in California.

To qualify:

  • The amount outstanding must be $80,000 or less at the time of application submission
  • Applicants must have missed at least two mortgage payments
  • Household income must be at or below 100% of the median income in their area
  • The household faced an ordeal related to the pandemic

“Any time after January 2020 the pandemic caused a household to lose income like job loss, job cuts, things like that. Any kind of loss of hours, any kind of temporary or permanent reduction in household income,” Weller said.

“The goal here is really to prevent foreclosures,” Weller added. “It’s to prevent the displacement of families in California. The aid will therefore not need to be repaid.”

The family is eligible if they own a property, whether it is a family home, a condo or even a mobile home. The program does not include investment properties.

“The program is one-time financial assistance. It’s not a loan. It’s not like a second mortgage. They do not issue a lien on your property. It’s just a one-time payment, 100% of what you owe on your mortgage to bring it up to date,” Weller said.

According to Weller, the average median income for SLO County is $109,000 for a family of four.

Once a household receives the money and the family is no longer at risk of foreclosure or losing their home, they are expected to make ongoing payments if they still owe their mortgage.

San Luis Obispo County residents seeking more information about this program or assistance avoiding foreclosure can call (805) 543-5140 for eligibility review and legal support.