If you have an FHA loan and are unemployed, it is indeed good news.
Under a new regulation effective August 1, 2011, you can apply for and be granted 12 months of forebearance. During this time, the bank will not be allowed to charge late fees or penalties – or to proceed with foreclosure.
You may be required to make token payments, and your unpaid interest will be tacked on to the loan balance, but the balance won't grow by leaps and bounds via fines and penalties. You’ll have a full year of breathing room in which to find new employment and get back on your feet.
And... since you don't have to commit to staying in the house long term, you'll also be free to market and sell it without worry that it will suddenly be lost to foreclosure.
Call me – I’ll be happy to share more of what I know about this program and the other home retention resources available to California homeowners. And if selling is what you prefer, I’ll explain the marketing plan that gets my listings moved quickly from “for sale” to “Sold.”