RSS Feed for This PostCurrent Article

Fannie Mae to Penalize Homeowners Who Walk Away From Their Homes

Now more than ever, homeowners need to work with Agents and lenders when contemplating a default on their mortgage.

On Wednesday, Fannie Mae announced policy changes that will encourage more homeowners to pursue alternatives to foreclosure. Borrowers in default who decide to walk away but have the capacity to pay or didn’t complete a workout in good faith will face serious consequences: they won’t be eligible for a new Fannie Mae-backed mortgage loan for seven years from the date of foreclosure.

Not only that, but in jurisdictions that allow it, Fannie is doubling their efforts to pursue deficiency judgments to recoup the debt anyway.

“We’re taking these steps to highlight the importance of working with your servicer. Walking away from a mortgage is bad for borrowers and bad for communities.” Terence Edwards, Fannie Mae executive VP for credit portfolio management

Now, homeowners who work with lenders in good faith may be eligible for foreclosure alternatives and could then expect to be qualified for another loan within three years (sometimes as little as two!). This new development offers a compelling reason to convince homeowners that pursuing alternatives is in his or her best interest.

It is now more important than ever for homeowners to use the services of professionals when facing default. Click here for all the details of Fannie Mae’s policy changes.

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Comments are closed.