New Fannie Mae Policy May Offer Hope To Struggling Homeowners

By
Services for Real Estate Pros with TheHousingGuru.com

In an attempt to help both the housing crisis and the economic recovery, a new Fannie Mae policy may offer hope to struggling homeowners. Those who are currently unable to make their monthly payments can offer a “deed-in-lieu” of foreclosure or “short sale” of their property and may be able to qualify for a home loan much sooner than allowed under previous underwriting guidelines.

 

In an announcement released earlier this month, Fannie Mae described the new rules which will take effect on July 1 and will allow many to return to homeownership within two years. Although the changes are significant, they do come with limitations. Homeowners will be required to post a 20% down payment and must demonstrate an improved credit rating that meets Fannie Mae’s underwriting standards. However, those homeowners who can prove that their mortgage problems were a result of extenuating circumstances such as job loss, divorce, or unusual medical expenses may receive an exemption and only be required to post a down payment of 10%.

 

The Fannie Mae “Selling Guide,” expected to be released on April 30 will include the new rules and the policies for extenuating circumstances. While the rules at Freddie Mac and FHA require a longer waiting period prior to eligibility to repurchase, FHA has indicated that it is considering making changes. To view the complete Fannie Mae rule changes, click HERE.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Charlottesville Choice Homes 05/03/2010 02:59 PM
  2. Monique Combs 05/04/2010 12:17 AM
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Rainer
110,833
Charlottesville Choice Homes
Keller Williams Realty - Charlottesville, VA

This will be interesting to see if they actually follow thru on this or if it is just a way to get some positive press at this time.

May 03, 2010 02:58 PM #1
Rainmaker
455,963
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Sarasota - They did get a positive reaction; time will tell how much difference the program will make to home buyers.

May 03, 2010 03:01 PM #2
Ambassador
2,755,526
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Little "relief" in my view.

Once a consumer's credit has been impaired to the degree that a foreclosure, short sale or "deed in lieu of" hits their credit report, the interest rates they'll have to pay for any credit will necessarily limit the availability of any future credit.

 

.

May 03, 2010 11:07 PM #3
Rainmaker
316,518
Monique Combs
Royal Shell Real Estate - Bonita Springs, FL
Royal Shell Real Estate - Monique Combs

John ~ Great information. It seems better than forclosure and 7 years of bad credit.

May 04, 2010 12:17 AM #4
Rainmaker
473,005
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

John, thanks for the information - great stuff!

May 04, 2010 12:27 AM #5
Rainmaker
455,963
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Lenn - I think it's mostly a "feel-good" policy, but those who are affected may "feel" it worthwhile.

Monique - It does provide a bit of "hope."

Janice - Thanks for visiting.

May 04, 2010 12:32 AM #6
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Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Central Maryland

Another government program that will probably fall short of it's goal. It's difficult to remain positive when so many "band-aid" plans have failed.

May 07, 2010 02:47 PM #7
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