Fannie Mae made an announcement last week that borrowers who walk away from their mortgages – the strategic defaulters – will be unable to secure a Fannie Mae mortgage for seven years following the foreclosure.
And in the states that allow deficiency judgments, Fannie said they’d be taking legal action against those borrowers in an effort to recoup mortgage debt.
Fannie says it is instructing all its mortgage loan servicers to monitor delinquent loans on the verge of foreclosure and recommend cases for Fannie to pursue for deficiency judgments.
An EVP at Fannie said that the agency is taking these steps to “urge” borrowers to work with servicers. (If that’s an urge, we’d hate to see a push.)
Are they going to do the same thing on Commercial Property?
Oh, that’s right – they can’t!