Stop Louisville Kentucky Home Mortgage foreclosures
In 2010 Fannie Mae estimated 1 in 4 homeowners have under-water mortgages. 12 percent of those mortgages have “strategic” home foreclosures that went into foreclosure only because the home was worth less than the mortgage. Fannie Mae announced that they will lock out borrowers from receiving a new mortgage for seven years if they default on a mortgage that they could have repaid to stop voluntary foreclosures. “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,” said Terence Edwards, Fannie’s executive vice president for credit portfolio management.
Fannie Mae said they will seek deficiency judgments against borrowers that volutarily allow home mortgage foreclosures to stop these voluntary foreclosures. Fannie Mae instruct lenders to monitor foreclosures and delinquent accounts and recommend mortgage cases that may warrant action.
This is just another reason for homeowners to consider bankruptcy if they are facing foreclosure. When a borrower files bankruptcy he proves that he lacks the income to repay his debts and a federal judge determines that issue settling it for all time. Homeowners who file bankruptcy have protections from ever having to pay a deficency judgment or discrimination that Fannie Mae and other lenders seems to be intent on launching. When a home owner cannot afford to repay his home mortgage and overall debt he has the right to file a Chapter 7 Bankruptcy to surrender the home or save the home by filing a Chapter 13 and catching up these payments over time and discharging the unsecured debts.
These are the same home mortgage lenders that sold predatory mortgages to borrowers who could not pay in the first place. Mortgage lenders who are more responsible for the foreclosure than the borrower. Mortgage lenders that forged who and who could not pay their mortgage and what the home was worth.
Nick C. Thompson Louisville Kentucky Foreclosure Attorney
