Don’t Walk Away

Borrowers who consider walking away from their Hobokenmortgages will need to think twice.

With Fannie Mae’s implementation of a new policy that penalizes borrowers who walk away even though they had the ability to pay, or who did not complete a workout arrangement will be put into a tough situation. These borrowers will now be ineligible to obtain a Fannie Mae-backed mortgage loan for seven years. If a borrower experiences extenuating circumstances they may be eligible for a new mortgage loan within two to three years.

Fannie Mae is also considering legal action to recover outstanding mortgage debt from borrowers who strategically default on their loans in jurisdictions that allow for deficiency judgments. Fannie Mae will be instructing its servicers to monitor delinquent loans facing foreclosureand recommend cases that could possibly call for the pursuit of deficiency judgments.

For help with understanding the mortgage market, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken,a progressive city where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.