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Owners of San Jose Foreclosed Homes for Sale Get Help From FHA

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By : John Cutts    99 or more times read
Borrowers who owe more on their mortgage than the value of their properties will get a chance to get out of trouble with help from the U.S. federal government. The latest program from the Obama administration aims to alleviate the problems of homeowners across the country, including owners of San Jose foreclosed homes for sale.

The state of California has some of the highest underwater mortgages and foreclosure problems, including foreclosed homes in Santa Clara, CA, that the latest effort from the government will be of great interest to its residents. Under the latest initiative, the Federal Housing Administration (FHA) will allow lenders to provide borrowers whose debts are worth more than their homes with refinanced loans guaranteed by the government.

For those who own California foreclosed homes or facing potential foreclosure, the latest news is a welcome one. The program also includes a provision requiring lenders to waive at least ten percent of the initial loan amount. The decision of which borrowers will be included in the program will be made by investors who control the mortgage loans.

The government has recently been under fire for allegedly failing to make any significant impact on the housing market crisis with its series of initiatives, as analysts cited the huge number of foreclosed properties, including San Jose foreclosed homes for sale, still present in key areas of the country. The latest effort is reportedly an attempt to launch a program that does not have the mistakes that have allegedly plagued previous efforts.

The administration's previous projects have ranged from buying foreclosure houses for sale to loan modification to a series of other efforts designed to save homeowners from foreclosure. In the latest FHA initiative, mortgage-backed securities investors will be allowed to assess their holdings and choose the borrowers who will be provided by refinanced loans guaranteed by the government agency.

The theory, according to analysts, is that investors have particular loans that they are eager to unload because of the level of default risks associated with these loans. The government is hopeful that this strategy will make a significant dent on the number of foreclosed properties all around the country, including San Jose foreclosed homes for sale.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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