Strategic defaults are anything but strategic for distressed homeowners today. The Distressed Property Institute and CEO Alex Charfen, author of the CDPE, have stood against this practice from the very beginning. Now Fannie Mae has intensified penalties for those who “strategically default” on their mortgages, stating:

“… defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the day of foreclosure.”

This is yet another reason that homeowners should seek other alternatives to foreclosure, including short sales, and why agents need to have all the information to counsel distressed homeowners properly.

Article courtesy of www.cdpe.com

Posted on Saturday, June 26th, 2010 at 9:23 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.