Keep Your Home California on Wednesday announced changes to help more low- and moderate-income struggling homeowners remain in their homes.

Homeowners with a qualifying hardship and an unaffordable mortgage payment – greater than 38 percent of a family’s gross household income – can now qualify for the Principal Reduction Program, which offers as much as $100,000 in principal reduction and can lower monthly mortgage payments by hundreds of dollars.

Also, the Mortgage Reinstatement Assistance Program, which allows homeowners to catch up on their mortgage payments, has been increased from $25,000 to $54,000. The change should help more homeowners who have fallen behind on their payments.

Homeowners must have recovered from their financial hardship and be able to make their monthly mortgage payments going forward in order to be eligible for the program. Also, they must meet program eligibility requirements, including having suffered a financial hardship – such as a job loss, pay cut, divorce, a death or extraordinary medical expenses – and meet county-by-county income requirements.

More information is at or by calling (888) 954-5337, 7 a.m. to 7 p.m. weekdays and 9 a.m. to 3 p.m. Saturdays.

C/O Sacramento Bee's  Mark Glover, (916) 321-1184.

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