Fannie Mae may be given legal rights to sue to the fullest extent of the law those who have blatantly refused to pay their home loans when in actuality they had the money to do so.
The amount of foreclosures that most likely will happen this year will be at least 2.6 million. What is worse is that approximately 11 million owners are severely underwater as far as their homes are worth.
The term strategic default has come about as a direct result of these consumers refusing to pay their home loan mortgage and not wanting to seek alternative options due to their situation. The final surprise will be on these home buyers because Fannie Mae plans are not funding these people for at least seven years.
But that’s not all. Mortgage lenders who feel they have been defrauded by these consumers will seek deficiency judgments in court. This will legally bind the borrower who has quit paying on their home loan to pay any balance that is still owed after their house is sold off.
But as expected, there will be limitations as in California. A lender will only get a court order for a deficiency judgment on a home used for refinancing but not as a purchase loan.
And as regards the ability for future borrowers who have purposely defaulted on their current mortgage to attain another government-sponsored home loan?
Think about it for a moment: What if Fannie Mae took the stance that any government sponsored loans such as a FHA loan would not be available for ones who simply walked away from their home loan?
Of course this would be the end result once it was proved that the homeowner refused to pay their home loan all because they were upside down on the value and that it wasn’t due to being unemployed.
How long will this borrower be in financial limbo? Well, according to Fannie, they would not buy or guarantee another home loan for these fraudsters for seven years.
The decision on whether a homeowner will continue to pay on a house where its value is now below what the loan amount is depends on how much the house is upside down according to data from CoreLogic.
However, if the home value falls more than 25 percent under the current home loan amount, more and more consumers would then simply walk away or commit a strategic default on their St Louis home mortgage loan. And these numbers seem to be nationwide.
If we go back to the month of March, about 31 percent of foreclosures were described as strategic walkaways which was compared to only 22 percent in March of 2009.
There are those who openly support this long overdue decision made by Fannie Mae and those who feel this isn’t fair nor legal to force on those whose homes were affected by this bad economy.
The period or time frame that one should be blacklisted for is being debated by consumers all over the nation. Some feel that seven years is no where near the allotted time for punishment and others feel it is just too much.
The problem seems to have gotten totally out of hand when the fundamental idea of buying a home to live in now became simply, an investment.
Thus, it is probably time that these greedy homeowners who thought nothing at the moment of refinancing their homes to the hill should be held accountable and taught a valuable lesson that one’s home is for living in and not for entertainment or investment purposes.
But the losses may continue to mount for these homeowners. Fannie Mae plans on taking additional legal action by seeking deficiency judgments from these ones who walked away from their home loan payments.
Many are now considering why the current Administration seems to be sweeping this issue under the political carpet as if this is not a serious problem when in reality it is of huge importance especially since Fannie Mae has taken such a strong stand against these homeowners.
Want to find out more about a St Louis finance loan, then visit Floyd J. Tapia’s site on how to choose the best St Louis mortgage lenders for all of your St Louis lending needs. Or give us a call at 877-334-0210 or 314-334-0210.
|
|