California Mortgage Relief Program: Status, CalAssist, and Help for Homeowners Now

What happened to the California Mortgage Relief Program

The program was California's share of the federal Homeowner Assistance Fund, created by the American Rescue Plan Act of 2021. The California Housing Finance Agency (CalHFA) ran it through a nonprofit subsidiary. It paid grants that did not have to be repaid to bring past-due mortgages and property taxes current for homeowners who fell behind because of the pandemic.

The money ran out. The program moved into its final funding phase in 2024, stopped accepting applications that year, and is no longer making grants. CalHFA reported more than $880 million in grants to more than 36,000 households, with an average grant of about $24,000. Any website still offering to "apply you" for it is not legitimate.

CalAssist for disaster survivors

CalHFA launched the CalAssist Mortgage Fund in June 2025 for homeowners whose primary residence was destroyed or severely damaged by a qualified disaster between January 1, 2023, and January 8, 2025, including the Eaton and Palisades fires. It first paid up to three months of mortgage payments, capped at $20,000. In February 2026 the state expanded it to up to one year of payments, capped at $100,000, and later raised income limits; in Los Angeles County the limit rose to $281,400. The grants go straight to the servicer and are not repaid.

As of September 14, 2026, the Governor's office reported $54 million awarded to 1,575 households. CalHFA set November 2, 2026, as the last day to submit new applications, according to news coverage of its announcement. CalHFA’s own site blocked our check, and the Governor’s September update did not mention a deadline. A saved but unsubmitted application did not count. If you submitted one before then, your application continues to be processed; the program's call center is 800-501-0019.

Options your servicer must review

With the grant programs closed, your servicer is now the main source of relief. Federal rules require servicers to try to reach you within 36 days after you fall behind and to send written information about options within 45 days, according to the Consumer Financial Protection Bureau. Under 12 CFR 1024.41, a servicer generally cannot make the first foreclosure filing until you are more than 120 days delinquent, and if you send a complete application more than 37 days before a sale, it cannot hold the sale while the application is reviewed.

• Forbearance: payments paused or reduced for a set time. It is not forgiveness; ask how the missed amount will be repaid.
• Repayment plan: the past-due amount is spread over several months on top of regular payments.
• Payment deferral or partial claim: missed payments are moved to the end of the loan or into a separate, interest-free lien. FHA loans use partial claims; Fannie Mae and Freddie Mac loans often use deferrals.
• Loan modification: a permanent change to the rate, term, or balance so the payment is affordable.
• Short sale or deed in lieu: ways to leave the home without a foreclosure sale when keeping it is not realistic.

Ask which investor owns your loan (FHA, VA, USDA, Fannie Mae, Freddie Mac, or a private investor). The options depend on it.

California's Homeowner Bill of Rights

California adds its own protections on top of the federal rules. The Attorney General's Homeowner Bill of Rights page says they generally apply to first-lien mortgages on owner-occupied homes of up to four units, and most apply when the servicer foreclosed on more than 175 homes in the previous year.

• Limits on dual tracking. While a complete loan modification application is being decided, the servicer generally must pause the foreclosure. It also cannot foreclose while you comply with an approved modification, forbearance, or repayment plan.
• Single point of contact. Once you ask for help, the servicer must assign a specific person or team to guide you.
• Contact before foreclosure. The servicer must try to reach you at least 30 days before starting foreclosure to discuss options.
• No application fees for a loan modification, and no late fees while it is being reviewed.
• Written denial and appeal. A denial must explain why and tell you how to appeal.
• Document accuracy. Servicers must check that foreclosure documents are accurate and supported by evidence.
• Tenants. Renters in a foreclosed home get at least 90 days' notice before eviction proceedings.

If you think a servicer broke these rules, talk to a lawyer or housing counselor, and you can report it to the Attorney General, the Department of Financial Protection and Innovation, or the CFPB.

How a California foreclosure unfolds

Most California foreclosures happen outside court, through a trustee. The general sequence:

1. Missed payments. Early contact from the servicer and an offer to review options.
2. Notice of default. Recorded with the county once the loan is far enough behind; the servicer must send you a copy.
3. Waiting period. At least three months must pass after the notice of default before a sale can be scheduled.
4. Notice of trustee's sale. Posted, mailed, and published at least 20 days before the auction.
5. Sale. The home is auctioned unless the loan is reinstated, a workout is approved, or the sale is postponed.

You generally have a right to reinstate (pay the past-due amount plus costs) until shortly before the sale. Ask the trustee or servicer for a written reinstatement quote.

Newer foreclosure protections

A 2024 law, AB 2424, took effect January 1, 2025. Among other changes, it lets a homeowner who has listed the home for sale with a California-licensed real estate broker get the trustee sale postponed for 45 days by giving the trustee the listing agreement at least five business days before the sale. If a buyer then signs a purchase agreement and the trustee gets a copy at least five business days before the new sale date, the sale is postponed once more, for another 45 days. The idea is to let owners sell and keep their equity rather than lose it at auction. Other California rules give tenants, owner-occupant buyers, and certain nonprofits a chance to buy after a trustee sale. Because these rules are technical, ask a housing counselor or lawyer how they apply to your sale date.

Free housing counseling

A HUD-approved housing counselor can review your budget, explain your servicer's options, help prepare a complete application, and sometimes talk to the servicer for you. The help is free. Find one through HUD's counselor search or by calling 800-569-4287. If you also carry credit card or medical debt that is squeezing your budget, our guide to California debt relief programs covers nonprofit credit counseling and state collection rules.

Property tax postponement for seniors and disabled owners

The State Controller's Office runs a Property Tax Postponement program that lets eligible homeowners defer current-year property taxes on their home. For the 2026-27 tax year, the rules reported from the Controller’s announcement are below. The Controller’s website blocks automated checks, so confirm the income limit (it was $55,181 last year) at 800-952-5661 before you apply:

• Age 62 or older, blind, or disabled.
• Own and live in the home, with at least 40 percent equity and no reverse mortgage.
• Household income of $57,002 or less for calendar year 2025.
• Filing period of October 1, 2026, to February 10, 2027. You must reapply each year, and funding is limited.

Postponed taxes become a lien on the home and accrue simple interest, which the Controller lists at 5 percent a year. The balance is due when the home is sold or transferred, or when the owner no longer lives there. For other help aimed at older owners, see foreclosure assistance grants for seniors.

How do I spot a mortgage relief scam?

Closed relief programs attract imitators. The CFPB lists the warning signs: being told to stop paying your mortgage, upfront fees, sending payments to someone other than your servicer, signing over your title, pressure to sign quickly, and "forensic loan audits." California's Department of Financial Protection and Innovation adds that upfront fees for loan modification help are illegal in California, and asks homeowners to report requests for them at 866-275-2677. Mail made to look like it comes from a government agency is a common trick. Real counselors and state programs are free.

A plan if you are behind

1. Open every letter from your servicer and note any dates.
2. Call your servicer and ask for a loss mitigation application and your single point of contact.
3. Call a HUD-approved counselor the same week.
4. Send a complete application as early as possible, and keep proof of what you sent and when.
5. If a sale date is set, talk to a lawyer or counselor about postponement and your rights.
6. Cut other costs. Ask about property tax postponement, utility discounts, and CalFresh to free up money for the mortgage.

Related guides

• California assistance programs
• Mortgage relief programs
• Foreclosure assistance for veterans
• California utility relief programs

Frequently asked questions

This guide is general information, not legal advice. Program status, limits, and dates can change. National Relief Program is an independent website and is not affiliated with CalHFA, the State of California, or any government agency.