Part 3....
But perhaps the toughest news from Fannie Mae concerns borrowers who have gone through foreclosure, (or are classified as a walk-away).
As we’ve discussed in the past, walk-aways’ are folks who have had enough....They leave their homes, maybe even turn in their keys to the lenders...and they walk-away. These end up being foreclosures, but the properties take a beating while they are vacant. Maintenance suffers, vandalism may occur, and the additional expenses involved
They will be excluded from obtaining a Fannie-backed loan for seven years, up from four.
Let’s touch on that again....If you are classified as a “walk-away”, or have travelled through a foreclosure, you will wait SEVEN years before you will qualify for a home loan.
SEVEN years.
Do you need a better reason to choose a short sale of your home?
“That’s a long time in this economy,” Ms. Kreyer said. That change was announced separately from the gift and debt rules, but will also take effect in Fannie Mae’s automated underwriting systems next month.
SO, agents…
….have you informed would-be walk-aways that they will be out of the housing market for SEVEN years….if don’t do a short sale?
Remember, short sales only take them out of the market for 24 months!
Fannie Mae buys or guarantees around $3.2 trillion in residential loans, about 28 percent of the entire residential mortgage market in the United States. Lenders typically issue loans based on the agency’s guidelines. Buyers who do not meet the new Fannie Mae requirements may have to consider a nonconforming loan from the Federal Housing Administration.
These loans, which do not follow Fannie Mae underwriting guidelines, require mortgage insurance premiums and, for those with low credit scores, higher interest rates and steeper down-payment requirements.
RE/MAX sells more homes than any other real estate company.
But perhaps the toughest news from Fannie Mae concerns borrowers who have gone through foreclosure, (or are classified as a walk-away).
As we’ve discussed in the past, walk-aways’ are folks who have had enough....They leave their homes, maybe even turn in their keys to the lenders...and they walk-away. These end up being foreclosures, but the properties take a beating while they are vacant. Maintenance suffers, vandalism may occur, and the additional expenses involved
They will be excluded from obtaining a Fannie-backed loan for seven years, up from four.
Let’s touch on that again....If you are classified as a “walk-away”, or have travelled through a foreclosure, you will wait SEVEN years before you will qualify for a home loan.
SEVEN years.
Do you need a better reason to choose a short sale of your home?
“That’s a long time in this economy,” Ms. Kreyer said. That change was announced separately from the gift and debt rules, but will also take effect in Fannie Mae’s automated underwriting systems next month.
SO, agents…
….have you informed would-be walk-aways that they will be out of the housing market for SEVEN years….if don’t do a short sale?
Remember, short sales only take them out of the market for 24 months!
Fannie Mae buys or guarantees around $3.2 trillion in residential loans, about 28 percent of the entire residential mortgage market in the United States. Lenders typically issue loans based on the agency’s guidelines. Buyers who do not meet the new Fannie Mae requirements may have to consider a nonconforming loan from the Federal Housing Administration.
These loans, which do not follow Fannie Mae underwriting guidelines, require mortgage insurance premiums and, for those with low credit scores, higher interest rates and steeper down-payment requirements.
RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?
Let us know what you think or add to our blog by writing a comment. Do you have a real estate question for the Real Estate Wizards? Email us at RealEstateWizard@DowellTaggart.com
Blog post written by the Dowell Taggart Team of RE/MAX Best Associates
Go to our Kansas City Real Estate Website!
1 Comments
I appreciate the whole article. Thank you for posting stuff about real estate. :)
ReplyDeleteThank You for commenting on our Blogger blog, http://OnlineKansasCity.Blogspot.com!
Just an FYI: Spam will not be published.