Fannie Mae is going to go after homeowners who walk away from their home loans if they have the ability to pay what they owe. The government controlled agency that needed to a massive bailout using our tax dollars now wants to go after the delinquent borrowers who simply do not want to play the game of Monopoly now that housing prices have fallen.
An article in the L.A. Times states:
Fannie Mae’s get-tough policy on so-called walkaways is the latest fallout from the housing meltdown, which has eroded the once widely held belief in homeownership as the path to household wealth.
Foreclosures continue at a rate of 2.5 million a year, Federal Deposit Insurance Corp. Chairwoman Sheila Bair said, and some 11 million households owe more on their mortgage than their home is worth.
Fannie Mae’s new policies are designed to prod borrowers into pursuing alternatives to foreclosure, including short sales — transactions in which lenders allow a home to be sold and cancel the debt while accepting less than full payoff of the mortgage.
But should Fannie Mae be allowed to go after those who walk away?
What do you think?