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Walking away from mortgage will hurt future loan chances
By Edith Barlow on Jun 27th, 2010
Those with home loans may have found that their financial situations made it almost impossible to keep up with payments, even after the recession.
Still, others have actually opted to decline paying their mortgage on purpose, especially in the fact of having a property that's worth far less than what they borrowed. Consumers who opt to walk away from their homes may be in for a rude awakening, given a recent announcement from Fannie Mae.
The government-owned company said it would not back home loans for people who walked away from mortgages for at least seven years. Others who tried to make an attempt at solving their mortgage problems would also need to build back their standing with Fannie Mae, although they could do so in less time.
"Walking away from a mortgage is bad for borrowers and bad for communities and our approach is meant to deter the disturbing trend toward strategic defaulting," Terrence Edwards, an executive with the company, said.
Consumers who are having difficulty with their home loans may consider a number of government programs. They could also turn to a debt management plan, which may free up additional cash.
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