FHA Loan

In foreclosure news, San Jose banks must offer foreclosure alternatives quickly to help you keep your property in California. If you’re already behind on your mortgage, or waiting for months just to hear back from the bank to find out if their willing to modify your loan, Fannie Mae and Freddie Mac are gonna start to lay the smack down on your bank. Starting January 1st, if you are more than 30 days late on your payment, your bank will be required to send you a packet in the mail offering you alternative options to foreclosure. When you let them know which option you want to take, they’ll have just 30 days to evaluate you as a borrower to see if you refinance or modify your loan. Then they will decide which course of action they think is the best alternative for you. Now this doesn’t mean that they HAVE to make sure you are approved for a modification or principal reduction, it just means they can’t keep you hanging on waiting for an answer. If they do, they’ll be hit with a $500 fine for not getting back to you. Now, with the average underwater homeowner being upside down about $65k on their home already, a $500 fine to the banks will just be a drop in the ocean of their bigger problems.