(Originally published July 4, 2010.)
This past week, Fannie Mae announced policy changes designed to penalize borrowers who don’t work with their servicers and pursue alternatives to foreclosure. Borrowers, who default or decide to walk away from their properties, will be barred from obtaining a FNMA backed mortgage loan for seven years from the date of foreclosure! Freddie Mac and FHA are also considering stronger policies.
Troubled borrowers who work with their lenders, providing information to assess their situation, can be considered for foreclosure alternatives, such as a loan modification, a short sale, or a deed-in-lieu of foreclosure.
The problem is only a small percentage of homeowners are qualifying for these alternatives! Despite the programs put forth by the White House and lenders, the criterion for help is so restrictive, it’s determined that most homeowners are making too much income – or not enough! So what’s a homeowner having financial difficulty to do? Although the doublespeak from Washington might sound pleasant in a press release, the reality is that there are no bailouts available to most homeowners.
Since 1992, Warren Goldberg has helped thousands of clients own their homes, refinance their mortgages, restructure their debts, and invest in real estate. Warren is known for his wide knowledge of mortgage products and wealth-creation strategies.