Fannie Mae has decided to drop the hammer a bit on homeowners that are ‘strategically defaulting’ on their home loans. This is not very surprising actually with people walking away from their home at a record pace.
The word from Fannie Mae is that you will be BARRED from obtaining a Fannie Mae backed loan for 7 years if you do not attempt to modify or use other methods of home retention or work out plans with your lender.
In addition, people that live in jurisdictions that allow deficiency judgments may also find themselves perused after walking away.
The moral of the story? TRY AND WORK OUT YOUR HOME LOAN!!!
The reality is that you may be able to adjust your payment to less than what you would pay for rent. It is worth the time and effort to try and make it work. If it doesn’t end up coming together then at least you tried and can still be eligible for a Fannie Mae loan in just two or three years instead of seven!