Fannie Mae Increases Penalties for Borrowers Who Walk Away Seven-Year Lockout Policy for Strategic Defaulters

http://www.fanniemae.com/newsreleases/2010/5071.jhtml



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.


"We're taking these steps to highlight the importance of working with your servicer," said Terence Edwards, executive vice president for credit portfolio
management. "Walking away from a mortgage is bad for borrowers and bad
for communities and our approach is meant to deter the disturbing trend
toward strategic defaulting. On the flip side, borrowers facing
hardship who make a good faith effort to resolve their situation with
their servicer will preserve the option to be considered for a future
Fannie Mae loan in a shorter period of time."

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.

Troubled borrowers who work with their servicers, and provide information to help the servicer assess their situation, can be considered for
foreclosure alternatives, such as a loan modification, a short sale, or
a deed-in-lieu of foreclosure. A borrower with extenuating
circumstances who works out one of these options with their servicer
could be eligible for a new mortgage loan in three years and in as
little as two years depending on the circumstances. These policy
changes were announced in April, in Fannie Mae's Selling Guide Announcement SEL-2010-05.










Views: 24

Reply to This

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

cheeki kea commented on tjdavis's photo
1 hour ago
cheeki kea commented on cheeki kea's video
Thumbnail

This Woman DESTROYED Harley-Davidson's Future Forever

"It's a sad day on the highway. But I guess the show must go on. Watch out for the ruination of…"
2 hours ago
cheeki kea posted a video

This Woman DESTROYED Harley-Davidson's Future Forever

This Woman DESTROYED Harley-Davidson's Future ForeverWelcome to Ride Radar – Your Frontline Source for Motorcycle Deals, Trends & Market Mayhem.Looking for t...
3 hours ago
tjdavis posted a photo
8 hours ago
Burbia posted a status
"Who knew releasing the MLK files and literally deflecting, it ends up implicating himself with the Epstein Files."
yesterday
Burbia posted a video

Dan Bilzerian DEMOLISHES MAGA Nutjob Patrick Bet-David on His Own Show

Watch as two powerhouse personalities collide in this no-holds-barred debate on one of the world’s most contentious issues. Patrick Bet-David, known for his ...
Monday
Doc Vega's 7 blog posts were featured
Sunday
tjdavis's 2 blog posts were featured
Sunday
Less Prone favorited tjdavis's blog post Track AIPAC
Sunday
FREEDOMROX's blog post was featured

MRNA VACCINES: Question

Hello my fellow sojourners,I know it has been five years since the Plandemic, but one question has…See More
Sunday
Less Prone favorited FREEDOMROX's blog post MRNA VACCINES: Question
Sunday
cheeki kea commented on cheeki kea's photo
Saturday
cheeki kea posted a photo
Saturday
Doc Vega posted blog posts
Friday
Doc Vega commented on Doc Vega's blog post Marjory Taylor Green Proposes Bill Abolishing Geoengineering or Weather Modification
"cheeki kea Marjory is in a daily battle with Democrats on the hill constantly coming up with more…"
Friday
Doc Vega posted blog posts
Jul 16
Mr. Sizzle favorited Less Prone's video
Jul 15
tjdavis posted a photo
Jul 15
Doc Vega posted a blog post

The Saga of Joe Adams May Have Solved What's Behind the Numerous Disappearances Going on in our National Forests

     The year is 2023 in September. A nature’s photographer and experienced survivalist, Joe Adams…See More
Jul 14
Sandy posted a video

Aron Siri's opening statement, Senate Hearing on Covid Vaccines, May 25

Opening statement Aaron Siri, Managing Partner, Siri & Glimstad, L.L.P.Senate Homeland Security and Governmental Affairs, Permanent Subcommittee on Investiga...
Jul 14

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted