Underwater Mortgage Holders Find Relief At Sacramento Convention Center

Grace Beady was down on her luck. She was laid off from her job, she lost her pension and she was worried she was about to lose her Vallejo home.

She was part of a large crowd seeking relief from underwater mortgages at the Sacramento Convention Center Thursday.

Her story is a familiar one.

"I never got into real estate to move it and sell it, but to live in it," Grace said.

Homeowners from all over northern California showed up at the convention center to see if they could refinance or modify their loans in hopes of holding onto the American dream.

"Everyone has tried and failed to work with their lender, but now they can come here, meet face-to-face with their lender and get an affordable solution," said Bruce Marks, founder of the Neighborhood Assistance Corporation of America.

And with more than $2 billion in assistance available, homeowners who can't afford their mortgages may get that needed help. If approved, the principal could be reduced by $100,000. For those out of work, $27,000 is available. There is also up to $25,000 to cover principal, interest, taxes, insurance or Homeowner's Association dues.

"There is a lot of money out there dedicated to California homeowners that has not been used," Marks said.

While there is more money, foreclosures are down statewide, so the crowds are a bit smaller than from a few years ago.

But homeowners like Mohammad are back crunching the numbers to see if they can qualify for a better rate this time around.

"This is the third time I am trying. I tried reducing my mortgage, but it didn't work, so this time I want to refinance my home loan," Mohammad said.

While Mohammad waits for an answer, Grace is leaving with a smile. After spending her morning inside these walls, she will now go home and begin saving $1,000 a month. She says she will now be able to afford to keep the lights on and the water running.

"To celebrate this? I'm going to go home and make a prayer," she said.