From Fannie Mae today:
WASHINGTON, DC — Fannie Mae (FNM/NYSE) announced today policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure. Borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.
This is a good thing, though true strategic defaults are trickier to distinguish from other defaults than one would think.
Also, for borrowers out there considering foreclsoure or a foreclsoure alternative: Bear in mind that in the future, the burden of proof (that you could not afford the home, or DID make a good faith effort to work things out) will be on you, so speak with your servicer, and keep meticulous records – you will need them to get a mortgage in the future.
Related posts:
- MN Attorney General Proposes Foreclosure Relief, Fannie/Freddie to Suspend Foreclosures
- Fannie Losses May Mean Tougher Mortgage Standards to Come
- Is Your Loan a Fannie? Look it up!
- More on the Hope Now Deniallance: Sorting them Out
- Pain for Prime Borrowers: Fannie Mae, Freddie Mac to Hike Fees; or How a Three-Point Difference in Your Credit Score Could Cost You Thousands.
Equal Housing Lender |
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I concur that this is a good thing. I think it just may put enough concern into some who are considering a strategic default. Anyway to keep these homes out of the inventory of homes for sale is desirable