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Fannie Mae announced on June 23rd that they are making changes to the policies regarding the amount of time that must pass after a foreclosure before a borrower can purchase with a Fannie Mae backed loan again.

Borrowers who choose to walk away from their home and that had the capacity to pay their mortgage or did not complete a payment alternative with their loan servicer will be ineligible for a new Fannie Mae backed mortgage loan for seven years from the date of foreclosure.

"Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting. On the flip side, borrowers facing hardship who make a good faith effort to resolve their situation with their mortgage servicer will preserve the option to be considered for a future Fannie Mae loan in a shorter period of time" said Terence Edwards, Executive Vice President for Credit Portfolio Management.

For jurisdictions that allow for deficiency judgments, Fannie Mae will also take legal action to collect the outstanding mortgage debt from borrowers who strategically defaulted on their loans.

On a positive note, according to TBWS Rate Alert on 7.13.10 "Interest rates are holding very well with the advances in the stock market over the past 10 days.” It is still a great time to refinance or purchase. Give us a call to take advantage of the amazing rates.

And, if you had a foreclosure two or more years ago, call us to see if we can help get you back on the path to homeownership.