It warms the cockles of my heart to read what Fannie Mae intends to do to “strategic defaulters”…..
I remember hearing Jim Cramer actually tell people to do it on TV, and thought “You Scum.”
I’ve been deep underwater on a mortgage on a residence I had to move away from. I rented it at a substantial carrying loss for five years until I had saved enough money from working to pay off the mortgage when I sold the apartment. It’s just the right thing to do.
I showed up at the closing, and gave up the keys, locking in a solid six-figure loss, but walked away with my integrity and credit rating intact.
Now Fannie Mae is going to go after strategic defaulters for EVERY DIME in deficiency judgments, including all commissions, legal costs, and repairs for the damages from the truly slimy people who remove the appliances and trash the houses for copper.
That’s on top of the seven year “penalty box” those borrowers will be in, locked out from getting any new mortgage from Fannie. Now if Freddie can join them, along with the major banks, this wave of stealing from the rest of us may begin to subside.
Here’s the story in Housing Wire. As a taxpayer and now Fannie Mae owner, I heartily endorse this move.
Echoes of Clint Eastwood ring in my head: “Do you feel lucky, punk? Well, Do Ya?”