6/24/10: The Sacramento Bee: California to offer program to trim underwater mortgages

"California is going to use federal money to pay down the mortgages of struggling homeowners.

California Housing Finance Agency announced Wednesday that it will spend $420 million to trim individual mortgages by up to $50,000. Lenders will be asked to match the amount, a deal that could make thousands of mortgages newly affordable across the Sacramento area.

The program, launching Nov. 1, will be run on a first-come, first-served basis, said Evan Gerberding, marketing manager for the CalHFA's "Keep Your Home" initiative....

More information is available at the Keep Your Home website: www.keepyourhomecalifornia.com; or call (916) 373-2585."