| Let the Bank Take Your House, Buy a Home in Seven | | | | the difference between the mortgage owed and the |
| Years | | | | bank's sale price of your home. |
| Fannie Mae, the government-sponsored-enterprise that | | | | In the case of a Short Sale, one can negotiate with the |
| offers low interest 30 year loans, recently changed its | | | | bank or mortgage company over the deficiency figure |
| position on when someone who experiences | | | | for a partial amount or to eliminate it altogether. |
| Foreclosure can be eligible again to buy a house. | | | | What Fannie Mae's actions underscore is this: One of |
| Fannie Mae's original view was five years. In the last | | | | the best solutions for someone facing foreclosure is a |
| few months it has shifted to seven years. The Short | | | | Short Sale. According to Fannie Mae, if you take this |
| Sale waiting period is only two years. | | | | alternative path, you will only have to wait 2 years to |
| The reason for the change is that many homeowners | | | | be eligible for a new Fannie Mae loan to purchase a |
| are now conducting "strategic defaults". This is an | | | | new home. |
| action where the homeowner walks away from a | | | | Fannie Mae loans have different criteria than normal |
| home when they have the ability to handle a | | | | commercial loans, and the loans are at lower interest |
| mortgage, or can agree to some compromise plan. | | | | rates. Conventional loans for those rebuilding credit will |
| In these cases, individuals find that their homes have | | | | require a longer wait and will have a higher interest |
| declined in value so much, that their mortgage cost is | | | | rate attached. |
| far greater than their actual house value. Some | | | | If you conduct a successful Short Sale, one can rebuild |
| homeowners think that a credit score drop is a good | | | | a credit rating over two years, making payments on |
| trade for getting out of a mortgage. If they have a | | | | time. |
| house valued at $350,000 when the mortgage is at | | | | Some experts say that the effect of Foreclosure or |
| $500,000, then it might make sense to just bolt. | | | | Short Sale are the same on your credit record, others |
| Individuals conclude that their houses will never ever be | | | | disagree based upon the recent experiences of those |
| worth the original price, so why not just get out? | | | | who entered into short sales quickly. |
| Fannie Mae has been sustaining huge losses on its | | | | In any case, Short Sale is the best option, when you |
| loans; strategic defaults are becoming a major | | | | get into trouble making your payments. Contact an |
| problem. As a result it has upped the grace period | | | | experienced Distressed Property Expert to help you |
| from five to seven years for a repurchase. And it will | | | | make this important decision. Remember, in only two |
| aggressively try to obtain "Deficiency" monies from | | | | years you are eligible for a Fannie Mae low interest |
| these individuals. A Deficiency Judgment is a claim for | | | | home loan. |