Fannie Mae to Require Lenders Police Delinquent Loans

credit: akurtz © istockphoto.com/akurtz

Kicking Borrowers when They're Already Down?

On June 23, 2010, Fannie Mae announced policy changes designed (1) to encourage borrowers on the brink of foreclosure to work with their lenders, and (2) to penalize borrowers who strategically default on their mortgages. These policy changes were developed in light of the rising number of borrowers choosing to walk away from their mortgages and start over.

Good Faith vs. Bad Faith and Everyone Else
According to Fannie Mae, “borrowers facing hardship who make a good faith effort to resolve their situation with their lender will preserve the option to be considered for a future Fannie Mae loan.” These borrowers can be considered for foreclosure alternatives such as a loan modification, a short sale, or a deed-in-lieu of foreclosure. Borrowers who successfully enter into a foreclosure alternative program with their lender could be eligible to apply for a Fannie Mae-backed loan in as little as 2 years. READ FULL ARTICLE: Fannie Mae to Require Lenders Police Delinquent Loans