Fannie Mae finally takes action to curb foreclosures now shortsales are better?

I've heard it from clients, agents, loan officers and even waitresses:

Why not walk away from a home? It probably won't recover in value in the next 3-5 years anyway, by then, I could save up enough money to put 5% down and probably buy my home back for less than I owe now!

Many people upside-down on mortgage balances to value don't seem willing to pay as much monthly for their home.

So, what has been happening? People are just walking away.

Fannie Mae got smart, maybe FHA will follow suit.

Fannie Mae changed their 4 year sideline period that a person has to wait before they can buy after a foreclosure to 5 years.

And, to further curb the rate of foreclosure walk-away's, they are requiring a 10% down payment at a minimum until 7 years elapses.

This rule takes effect 8/1/2008. Maybe now, people won't be as cavalier to walk away from their home...

Will it stop them? Is short selling now going to be more or less difficult? Who knows?