Maryland Luxury Group

Fannie Mae is sifting through borrower data to determine who is strategically defaulting and who is not after announcing more efforts this week to crack down ^[1] on those who walk away from their homes. And if the GSE determines someone strategically defaulted, then they say they will hold the borrower accountable for all associated costs of getting the house back on the market, in areas that lawfully allow deficiency judgments.

Often when a home forecloses, Fannie Mae brokers and contractors discover vandalism and missing appliances and fixtures when they ready the home for resale, the GSE said. The cost of making those repairs and replacements will be included in the determination of the deficiency amount, the spokesperson said, in addition to the difference in the mortgage balance and the proceeds from the foreclosure sale.

Those who Fannie Mae and its servicers deem strategically defaulted will not be able to secure a Fannie Mae-backed mortgage for seven years after the foreclosure and could face legal action in order for the company to recoup mortgage debt.

Fannie will base its assessment of who is and who isn’t walking away from their home on income verification, information on the borrower’s credit report, and borrower documentation related to the disposition of prior mortgage loans, a spokesperson for Fannie said.

When a borrower applies again for a Fannie Mae-backed mortgage, he or she would have to produce evidence of hardship or extenuating circumstances to get the loan.

“Borrowers who worked with their servicers to address delinquency and/or avoid foreclosure, will be viewed more favorably than those who do not,” the spokesperson said.

According to the announcement this week, Fannie is instructing its servicers to monitor delinquent loans on the verge of foreclosure and recommend cases where the company can pursue deficiency judgments.

Mortgage Trouble? Walking away is NOT the Answer!

You may have heard or read in the news about ‘strategic defaults’ as a possible foreclosure-avoidance option. However, of the millions of homeowners in distress, more than 70% of homeowners proceed without seeking assistance or getting the facts about their situation.

At http://www.luxurydistressedpropertyexpert.com/Strategic-Defaults-are-NOT-Strategic.aspx I’ve prepared a free report to explain the consequences of strategic defaults and foreclosure—and the benefits of a short sale—when underwater on your mortgage. You will learn the advantages and disadvantages to all your options.

I sincerely hope you’ll take advantage of this information and feel free to pass it along to anyone you know in need. Getting the right information is the key to getting back on track.

Please contact me any time with your questions or concerns.

I’m here to assist you.

Aaron Rice, CDPE, CLHMS, CRS, GRI, SHS
Keller Williams Realty Baltimore
443-244-0051 Cell

410-342-4444 Office