BANKS BEGIN TO GO AFTER DEFICIENCY JUDGMENTS - FANNIE MAE POINTS THE WAY

Reblogger Andrea Swiedler
Real Estate Agent with Berkshire Hathaway HomeServices New England Properties Licensed in Connecticut

 

New Milford, CT Real Estate, don't walk away from your home until you read this.

Before you walk from your home, read this. Head in the sand

If you are riding that slippery slope of borrowing from Peter to pay Paul to pay the mortgage, read this.

If you are behind on your mortgage payment, read this.

If you are playing ostrich, take your head out of the sand long enough to read this.

Hey, if you live here in the United States and own a home with a mortgage, read this.

 

Original content by Richard Zaretsky

Earlier this week I wrote about lenders taking the next step after a foreclosure.  Foreclosures happen from borrowers that "walk away" from their upside down valued properties, whether because of job loss, other expenses more important than the mortgage payment, or just a strategic default.  You can find the other article at MOTION FOR DEFICIENCY JUDGMENT - FORECLOSURE CONSEQUENCES.

An alarming event occured after I wrote that article.  In the past, there has been a pretty heated argument about whether the mortgage lenders are going to move on their ability to pursue deficiency judgments in foreclosure actions.  Many people say that it won't happen.  I even gave a seminar on foreclosures with a Florida judge that the judge said that she did not seen any deficiency judgment requests.

In the earlier article I showed a Motion for Deficiency Judgment from First Bank.  First Bank is big in Colorado and was a national lender, but it is not as big as the lender that filed the latest deficiency judgment that came into my office - Wells Fargo.

Now some explanation - Wells Fargo is not the owner of the note in this most recent deficiency judgment case - it is FANNIE MAE.

Fannie Mae released news late last month that it would take certain action on borrowers that walked from their properties in strategic defaults, one of the actions being they would blacklist the borrower for future loans for 7 years.  Filing for a deficiency judgment is the next action it will take.  Its announcement on June 23rd said, "Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. In an announcement next month, the company will be instructing its servicers to monitor delinquent loans facing foreclosure and put forth recommendations for cases that warrant the pursuit of deficiency judgments".

This announcement makes the call that many have been making to distressed homeowners only more important - DON'T PUT YOUR HEAD IN THE SAND THINKING THIS WILL ALL PASS TOMORROW - BECOME INVOLVED IN A SOLUTION TO YOUR PROBLEM -

Distressed borrowers should call their lender - or better yet - speak to a knowledgeable real estate attorney that looks for solutions (if the real estate or other attorney is all about keeping you in your house by dragging out the foreclosure, you are not speaking to an attorney looking to find a solution for you!

Copyright 2010 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 begin_of_the_skype_highlighting              561 689 6660      end_of_the_skype_highlighting  RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com

See our easy to understand articles at:

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Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

This should encourage people to at least work with the bank completing a short sale instead of just walking away, it will benefit them, the bank and all of us.

Jul 03, 2010 12:42 PM #1
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Scott, how will they decide who to go after? What if a work out solution could not be reached? You are so right, at least try to work something out first, try a short sale. If you haven't tried you stand a great chance of behing targeted.

Jul 03, 2010 12:48 PM #2
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I thought Richard's article was timely.

Read mine. 

I'm not nearly as nice as Richard.

Jul 03, 2010 12:51 PM #3
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Lenn, LOL, you are certainly very eloquent in your writing, I love it!

Jul 03, 2010 01:17 PM #4
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Andrea, banks don't want properties and I know that we at McCue bend over backwards to try to keep people in their homes.  We understand that when people get in trouble because of loss of job or health problems that they may not have a choice in falling behind. 

But those that just walk away from a house, can very well continue to pay the mortgage, but choose not to.  Those that are doing the so calledpolitically correct "Strategic Defaults", I hope they penalize them to the fullest.  These people will only make it tough on those that are truly in trouble.  What ever the Lenders, Fannie Mae, Freddie Mac, or FHA do to the so called, I will beat the system "Strategic Defaults" deserve whatever penalty is given to them.

Jul 03, 2010 03:30 PM #5
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Robert Vegas Bob Swetz
Realty ONE Group - Las Vegas, NV
Las Vegas Henderson Homes for Sale

Hello Andrea and I wish this huge Corps. would pull back on their greed and work more on helping the people of this country, something is better then nothing!

VB ;-)

Jul 03, 2010 03:40 PM #6
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

George, McCue Mortgage is also on my short list as you know. I know that your lending practices are extremly responsible. I want to let you know that first of all.

What really worries me is that the intent may be there in the beginning, but who is to say how this will really play out? I am thinking that many many people who should not be lumped into this category shall be swept in. They will find a way, of this I am sure.

Again, I don't believe McCue would ever do any shady practices or things that are not pro consumer.

VB, so do I, so do I. What are we to do?

Jul 03, 2010 06:21 PM #7
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Kathy Knight
Intracoastal Realty Corp - Wilmington, NC
BROKER, ABR, CRS, GRI, SFR, SRES

Market is getting tougher and tougher Andrea...

Jul 04, 2010 04:43 AM #8
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Kathy, that it is, and how much before we all break...

Jul 04, 2010 05:28 AM #9
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