If You Know Someone Who Is Thinking Of Walking Away From Their Mortgage -
If You Know Someone Who Is Thinking Of Walking Away From Their Mortgage -encourage them not to.
I have seen many businesses pop up to make money helping people come to grips with the mortgage crises, where the end result is walking away. The message is, hey just do it.
If you know someone thinking of this tell them not to do that. There are a lot of moral reasons not to, lots of reasons to buck it up, and a reason Fannie Mae warns:
The country’s two largest sources of mortgage money have a blunt warning for anyone thinking about joining the growing “walkaway” trend, where homeowners stop making payments and months later send the house keys back to their lender: You will feel the pain.
On March 31, Fannie Mae sent out new guidelines to lenders intended for walkaways and other foreclosure situations. Fannie will now prohibit foreclosed borrowers from getting another mortgage through the giant investor for five years, unless there are “documented extenuating circumstances.” In those cases, the mortgage prohibition is for three years.
Even after five years, borrowers with foreclosures in their files will be required to make at least a 10 percent down payment, and will need minimum FICO credit scores of 680.
Freddie Mac, Fannie’s rival, counts foreclosures as major credit blots for seven years, and a senior official said the company is now aggressively pursuing some walkaway borrowers “to preserve our deficiency rights”
Some people think take the easy way out: this one may not be so good.
Tags: walk+away, foreclosure, mortgage
