New Rules Surrounding Foreclosure

According to an article on housingwatch.com, walking away from your mortgage through difficult times rather than working out a plan with your servicer may block you from getting another mortgage for seven years from the date of the final foreclosure on the house. Fannie Mae says those are new rules already into effect.

All My Sons of San Antonio learnt that if you choose to work on terms with your servicer and come to an agreement, your wait time to buy a home will be much shorter. Fannie Mae is encouraging people to work with their lenders by shortening the time of eligibility for another Fannie Mae mortgage. Here’s the overview for eligibility depending on how you got out of your last mortgage.

It will also depend on other factors like credit history and credit score. Deed-in-lieu of foreclosure, means you get two years instead of four years if you can put 20% down on your house, four years if you can only put 10% down.

Pre-foreclosure sale stays at two years if you can put 20% down, four years if you can put 10% down.
Short sale will be treated the same way as pre-foreclosure sales and walking away means seven years.

If you can prove that there are extenuating circumstances like losing a job, the waiting period for deed-in-lieu, a pre-foreclosure sale or short sale will be reduced to two years with a 10 percent down. Fannie Mae is getting more involved because it seems like more and more people are defaulting strategically. In a study from the University of Chicago the researchers found that 31 percent of foreclosures were strategic defaults. The researchers defined strategic defaulters as "homeowners willing to default when the value of a mortgage exceeds the value of their house, even if they can afford to pay their mortgage."

Fannie Mae is also allowing lenders to go after people who are strategically defaulting. If you’re face with a foreclosure and need to move out of your place, trust the San Antonio movers to make the experience a little easier on you. We have plenty of experience when it comes to residential move and are available for last minute moves. Just get online for your free moving quote or give us a call. The San Antonio movers will take care of the entire move for you, from quilt-pad wrapping your furniture to assembling and disassembling your furniture as well.