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Fannie Mae To Allow Walkaways by Homeowners who are Current on Loans

Non-delinquent borrowers with illness, job changes or other reasons they need to move will become eligible in March to apply for a so-called deed-in-lieu transaction that erases the shortfall between a property’s value and the size of its mortgage. It follows a change in November that lets on-time borrowers sell properties for less than they owe, known as short sales, wiping out the remaining mortgage debt. Normally, the lenders could pursue people to recoup their losses.

“It’s an extraordinarily generous approach for companies still in debt to American taxpayers,” said Phillip Swagel, a professor at the University of Maryland’s School of Public Policy in College Park, Maryland. “We’re giving people an incentive to walk away, right when the housing market is starting to right itself.”

Previous foreclosure-prevention programs were designed to help only borrowers on the verge of losing their homes, in effect penalizing those who kept paying, according to homeowner advocates such as Julia Gordon, director of housing finance and policy at the Center for American Progress in Washington. In some cases, servicers have advised borrowers to stop making their mortgage payments to qualify for help, leading to evictions if their applications are denied, Gordon said.

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How GENEROUS of them...
We asked to see the documents on our home loans - 2 of them. They failed to produce them, meaning they defaulted. We were generous enough to give them back the houses.
We were current on our loan as we were on all debts, and showed a balance of over 150,000K on the first home they took back. They sold it for 29K. Had they negotiated in good faith with US, we would have paid out the 150K.

Love or fear? Choose again with every breath.

Hey Fishy--you are right. My

Hey Fishy--you are right.

My client fought Citi Mortgage for 8 years and when the house was sold they got $16,000 at auction. My client offered $85,000 and they said no way..

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if you own a home, look for your home prices to tank.

This is crazy