I just came across this bit of information that I thought was very interesting regarding foreclosures. Apparently, those that just "walk away" from assets that are backed by Fannie Mae loans may face stiffer financing guidelines in the future, and could potentially face collections.
These penalties would be for those who are in a financial position to pay but who choose not to. Or for those who did not, in good faith, attempt to work out an alternative with their lenders. This practice has been coined "strategic defaulting". The consequences for strategic defaulters would be ineligibility to obtain FNMA financing for 7 years (currently the waiting period after default is 2-3 years depending on circumstances).
In addition, Fannie Mae will implement legal action to recover defaulted amounts via deficiency judgements against the borrower, in states where it is legal to do so. (AZ does allow deficiency judgments of some types of properties)
A borrower who is unable to pay their mortgage should attempt to work with their loan company to work out an alternative such as a short sale, deed in lieu, or a loan modification.
See the full new release here
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