St Louis Mortgage Lenders Say Industry Will Be Tough On Those Who Walk Away
There will be new legal guidelines that will give Fannie Mae legal recourse against home loan buyers who refused to make their St Louis mortgage payments when financially they were able to.
Statistics show that approximately 2.5 million foreclosures occur each year. And at this moment, about 11 million households owe more on their home loan than what their house is worth.
The term strategic default has come about as a direct result of these consumers refusing to pay their home loan mortgage and not wanting to seek alternative options due to their situation. The final surprise will be on these home buyers because Fannie Mae plans are not funding these people for at least seven years.
In addition, many of the lenders who have been victims to this reckless behavior are seeking what legal experts call deficiency judgments. This is a court order requiring a borrower who has defaulted on their mortgage to pay any unpaid portion of the home loan after a foreclosed or seized house is sold.
California plans on limiting the use of court orders handed out to obtain deficiency judgments. If the home loan was for refinancing, the order will be granted. If the loan was for a purchase, no court order.
But what about the possibility of these homeowners who knowingly defaulted on their mortgage loan not being able to attain government sponsored loans in the future?
Sit back and think about the mortgage atmosphere when and if Fannie Mae rigidly upholds this new policy and said no to every homeowner who needed a FHA loan but could not get it due to refusing to pay their mortgage obligations.
Of course this would be the end result once it was proved that the homeowner refused to pay their home loan all because they were upside down on the value and that it wasn't due to being unemployed.
What would be the length of said banishment from Fannie Mae? Report has it that a home loan buyer would not be able to utilize their lending products for a period of seven years.
The research firm CoreLogic interestingly points out based upon their recent data that homeowners will more often than not continue to pay on their mortgage even if their house value drops if they have the money and income to do so.
On the other hand, consumers will more willingly walk away from their St Louis home mortgage loan when the value of their home drops 25 percent or more under the home loan amount.
March 2010, St Louis mortgage lenders saw about 31 percent of foreclosures as strategic walkaways by the consumers themselves which was compared to only 22 percent in March 2009.
However, many are now questioning why it took so long for Fannie Mae to make these debtors finally owe up to their financial responsibilities?
And why should this ineligibility only last seven years? Should we not throw the proverbial book at these irresponsible fools who in essence helped cause the greatest collapse in the housing industry since the Great Depression?
Over the last two to three years, there appeared to be a conscious trend for individuals to stop feeling that this house was no longer their family dwelling from the outside world but now their investment machine or cash cow.
Thus, it is probably time that these greedy homeowners who thought nothing at the moment of refinancing their homes to the hill should be held accountable and taught a valuable lesson that one's home is for living in and not for entertainment or investment purposes.
Fannie Mae is apparently not letting bygones be bygones. Not only will they refuse loans to these home buyers for seven years, they are getting court orders seeking deficiency judgments making them pay any balances owed after the home is sold.
Many are now considering why the current Administration seems to be sweeping this issue under the political carpet as if this is not a serious problem when in reality it is of huge importance especially since Fannie Mae has taken such a strong stand against these homeowners.
Statistics show that approximately 2.5 million foreclosures occur each year. And at this moment, about 11 million households owe more on their home loan than what their house is worth.
The term strategic default has come about as a direct result of these consumers refusing to pay their home loan mortgage and not wanting to seek alternative options due to their situation. The final surprise will be on these home buyers because Fannie Mae plans are not funding these people for at least seven years.
In addition, many of the lenders who have been victims to this reckless behavior are seeking what legal experts call deficiency judgments. This is a court order requiring a borrower who has defaulted on their mortgage to pay any unpaid portion of the home loan after a foreclosed or seized house is sold.
California plans on limiting the use of court orders handed out to obtain deficiency judgments. If the home loan was for refinancing, the order will be granted. If the loan was for a purchase, no court order.
But what about the possibility of these homeowners who knowingly defaulted on their mortgage loan not being able to attain government sponsored loans in the future?
Sit back and think about the mortgage atmosphere when and if Fannie Mae rigidly upholds this new policy and said no to every homeowner who needed a FHA loan but could not get it due to refusing to pay their mortgage obligations.
Of course this would be the end result once it was proved that the homeowner refused to pay their home loan all because they were upside down on the value and that it wasn't due to being unemployed.
What would be the length of said banishment from Fannie Mae? Report has it that a home loan buyer would not be able to utilize their lending products for a period of seven years.
The research firm CoreLogic interestingly points out based upon their recent data that homeowners will more often than not continue to pay on their mortgage even if their house value drops if they have the money and income to do so.
On the other hand, consumers will more willingly walk away from their St Louis home mortgage loan when the value of their home drops 25 percent or more under the home loan amount.
March 2010, St Louis mortgage lenders saw about 31 percent of foreclosures as strategic walkaways by the consumers themselves which was compared to only 22 percent in March 2009.
However, many are now questioning why it took so long for Fannie Mae to make these debtors finally owe up to their financial responsibilities?
And why should this ineligibility only last seven years? Should we not throw the proverbial book at these irresponsible fools who in essence helped cause the greatest collapse in the housing industry since the Great Depression?
Over the last two to three years, there appeared to be a conscious trend for individuals to stop feeling that this house was no longer their family dwelling from the outside world but now their investment machine or cash cow.
Thus, it is probably time that these greedy homeowners who thought nothing at the moment of refinancing their homes to the hill should be held accountable and taught a valuable lesson that one's home is for living in and not for entertainment or investment purposes.
Fannie Mae is apparently not letting bygones be bygones. Not only will they refuse loans to these home buyers for seven years, they are getting court orders seeking deficiency judgments making them pay any balances owed after the home is sold.
Many are now considering why the current Administration seems to be sweeping this issue under the political carpet as if this is not a serious problem when in reality it is of huge importance especially since Fannie Mae has taken such a strong stand against these homeowners.
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