Fannie Mae Takes Aim at Strategic Defaults

The Colonial Revival headquarters of Fannie Ma...
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Borrowers with a Fannie Mae-backed mortgage who engage in a strategic default won’t be eligible for another Fannie Mae-backed loan for seven years.  Fannie also will seek deficiency judgments against borrowers if allowed by state law.  Fannie in late July was writing full-blown instructions to servicers detailing its new policies.  Strategic defaults are defaults by borrowers who have CAPACITY to pay but don’t, or who don’t complete a workout alternative in good faith.  We will just have to wait and see what happens..I haven’t seen this happen yet.

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