www.lasvegasmtg.com Report: Fannie Mae is taking the gloves off against Strategic Defaulters!
http://www.lasvegasmtg.com: Fannie Mae is taking the gloves off against Strategic Defaulters as they announced they are seeking to prevent any agency including FHA from financing a home loan for 7 years for any borrowers that were able to make the payments but decide not to.
USA Today reported this new initiative yesterday from Fannie Mae and the company is seeking legislative approval to bar those that have been prove to have strategically defaulted from getting any home loan for seven years. Currently there is a bill in the House of Representatives to make it a law banning strategic defaulters from getting any home loan for seven years. This would require the Senate to pass the bill and then be signed into law by the President.
If this passes then FHA would be banned from lending to strategic defaulters for the same time period. Currently any short sale or foreclosure is 3 years before a borrower can get a FHA loan. The question is how would Fannie Mae determine if a borrower has strategically defaulted. Fannie Mae will determine if the borrower still has other debt and is making payment on those debts. The question I would ask if there was a delinquency in mortgage payments would there still be credit to the borrowers? If there is no credit available then what would prevent the borrower to file Bankruptcy to eliminate the debt and the foreclosure debt as well?
Can this really be fixed with a law to stop Strategic Defaults? Please let me know what you think.