Fannie Mae, the Federal Government controlled mortgage giant, has announced that they will make Camarillo homeowners who execute a strategic default wait seven years before they can apply for a home loan again.
According to research performed by Northwestern University and the University of Chicago, in 2009, 31% of all foreclosures across the country were strategic, with the state of California having the highest number of strategic defaults.
What Is Considered a Strategic Default?
Strategic default is a situation in which the homeowner allows the home to fall into foreclosure, not because of the inability to make payments, but because the loan amount on the home is larger than what the home is worth in today’s market.
Most homeowners who fall into the strategic default category are homeowners who have not pursued alternatives available to them; options such as short sale, loan modification, deed in lieu, etc. Camarillo homeowners who do contact their Fannie Mae loan provider and seek help can still apply for a home loan after 2-3 years. However, Camarillo’s strategic defaulters will need to wait 7 years before applying for a Fannie Mae home loan again.
Who is considered a Strategic Defaulter?
According to the Federal Reserve, strategic defaulters are homeowners who miss at least 6 consecutive mortgage payments but continue to make payments on their other debt, such as auto loans and credit cards.
In 2009 the three government agencies, Fannie Mae, Freddie Mac, and Federal Housing Administration (FHA), financed 95% of all the US home loans. (Source: NAR)
The new Fannie Mae stringency is designed to encourage homeowners to pursue alternatives to foreclosure.
If you need any help with short selling your Camarillo home please feel free to contact me, Mana Tulberg: (805) 443-8898.
Do not settle for a foreclosure! Short Sales DO Sell.
Facebook Comments
Powered by Facebook Comments