FANNIE MAE BRINGING DOWN THE HAMMER ON STRATEGIC DEFAULTS
This is important news.
Millions of people all over the country are underwater in their homes. Some who could pay their payments question why doing so would be a good idea when their equity may never come back...or take 20 years to do so.
So though they have no hardship, many decide to default on the loan. The lenders call this decision a "strategic default" -- the better to demonize those who choose it.
Many homeowners think of it as just being common sense.....and certainly not a "strategy".
Banks have been known to take this "strategy" themselves when they have a commercial property in dire straits.
Now Fanny Mae, the giant government loan gorilla, has apparently decided on a new "strategy" of its own:
FANNIE MAE BRINGING DOWN THE HAMMER ON STRATEGIC DEFAULTS
Fannie Mae announced today that they will make people who can make their payments and who do a strategic default will make them wait seven years before they are eligible for a Fannie Mae loan. It is estimated that there are 11 million homes acros America who are under water. That means the home owner owes more on the mortgage than the current market value of the home. We are facing the worst real estate bubble in the history of this county. There were predictions that we could have up to 21 million households upside down in their house in three years. I believe Fannie Mae is taking an early position to make people think twice before they perform a strategic default.
DEFINITION OF A STRATEGIC DEFAULT
This is when a home owner is walking away from their mortgage that they could pay but have decided not to because they owe more than their house is were worth at the current time. Home owners are not seeing any hope. So, their ideal suggestion is to give up and start all over.
Furthermore, Fannie Mae stated that they will pursue deficiency judgments in states that allow this by law. Please contact Harry D'Eliato learn more about your option in Arizona. Do you want to be on this list? Strategic defaults are continuing to rise because people have lost hope in the American Finance Machine. People on Wall Street continue to receive big bonuses at Christmas time and the American home owner is losing their home. Where is the balance? Who is monitoring Wall Street?
Fannie Mae will look at each hardship as it crosses it desk. A person with an acceptable hard ship or an approved short sale will only have to wait two years before obtaining a mortgage backed by Fannie Mae. Another option for home owners is to sign over their house in a "deed in lieu of foreclosure" to avoid a lengthy foreclosure process.
Statistics show that 7 out of 10 people who were foreclosed on their home did not seek a real estate professional for assistance. The Real Estate and Beyond Teamis here to serve the Phoenix, Arizona. We have professional lawyers, CPAs and tax attorneys waiting to assist you during your time of need. Would you like to know your options? If you cannot sleep at night, then please contact Harry D'Elia.
Harry D'Elia recently acquired another Realtor Designation-
CERTIFIED SHORT SALE NEGOTIATOR (CSSN)
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.
Phoenix Real Estate Resource Center
Follow Me On:
Comments(8)