The final version of the House Resolution Bill 22, known as the Surface Transportation Reauthorization and Reform Act of 2015, does not include the mortgage tax that was in the Senate’s version of the bill. The bill President Obama signed into law in December 2015 doesn’t include an extension of the higher guarantee fees that would’ve affected California homeowners.
The bill signed into law is considered a huge win for California realtors who wanted to protect future clients from increased taxes. In fact, the California Association of Realtors and the National Association of Realtors worked together to oppose the add-on fee that would have used money from mortgages to pay for transportation infrastructure. Some believe this fee could have cost California home buyers more than $8,000 over the life of their mortgage.
In related and equally positive news for California homeowners, those with unaffordable mortgages can receive free mortgage assistance from “Keep Your Home California.” This statewide program is federally funded, and allows you to seek up to $100,000 in free mortgage assistance. But, you’ll have to act quickly. There is a limited amount of available funds here in California. Once they run out, they’re gone.
For those who have applied to “Keep Your Home California,” it has helped them reduce their principal and lower monthly payment requirements. On average, homeowners in the program received an average of $75,000 in principal reduction, as well as a 14 percent drop in their monthly payments. This program may only last through the beginning of 2017.
If you’re falling behind on payments or are worried that you could lose your house, make sure you reach out to an Orange County real estate attorney who can help you take action before it’s too late. There are options available for California homeowners who are proactive and ready to fight to keep their home.
McFarlin LLP can help. Call us at (888) 728-0044.