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Fannie Mae To Deny New Mortgages To Deadbeats
It is now time to short Apple: Fannie Mae has just announced that it will no longer condone the same kind of irresponsible behavior that the Obama administration will soon be trying hard to codify into law, namely strategic defaulting. According to Dow Jones, bankrupt GSE Fannie Mae, announced "it won't back new mortgage loans for seven years for homeowners who walk away from their mortgages although they were able to pay or did not seek a workout in good faith with their lender." Terence Edwards, an EVP for Fannie, after having been a recipient of trillions in moral hazard (and having a job as a result), finds out that being on the receiving end of a total lack of integrity is not quite as pleasant: ""We're taking these steps to highlight the importance of working with your servicer. Walking away from a mortgage is bad for borrowers and bad for communities." Oh, now they tell us.
More humor from Dow Jones, as the GSEs finally realize just how screwed they are:
Fannie Mae said it also will sue borrowers who strategically default on their loans to recoup the outstanding mortgage debt in jurisdictions that allow for deficiency judgments.
Strategic defaults are becoming more common, various studies show -- a Morgan Stanley report pegged them at 12% of all home-mortgage defaults in February, up from "insignificant levels" three years ago. Lenders fear borrowers who "walk away" will greatly increase the industry's foreclosure-related losses, which already total in the hundreds of billions of dollars.
In addition, growing social acceptance of this behavior could have ramifications not only for personal credit histories and the health of neighborhoods, but also for the future of mortgage lending, according to those studying the issue.
One possible reason the numbers are rising is some homeowners' belief that lenders aren't aggressively pursuing those who default, according to a report by the Chicago Booth/Kellogg School Financial Trust Index.
Our advice: short AAPL now. The Generation 293,394,459 iPhone (to be released by December 2010 at the latest) may not be the marginal boost to EPS that all analysts who think Apple at a $1 qunitillion market cap is a screaming buy, as US consumers soon realize that the choice between a gizmo and a roof to sleep under is really not all that tough. Alas, Obama's plan to force Americans to not pay any mortgage bills ever again, is about to be massively derailed.
h/t London Dude Trader
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So, no more non-recourse loans? No more no down payment loans?
Here comes the triple dip.
yeah. Basically, people will STILL be walking away from their mortgages AND they won't be back into the housing market for 7 years. WOOT!
that's because they. don't. care.
They are certainly not going to let that young CFO from Freddie Mac have died in vain.
Incidentally, has Timmy G sold his NY home yet ???
My own view is that home loans should be strictly non-recourse. The lender is getting the home as collateral were a default to occur. Maybe then the lenders will actually take care to make sure the property is worth it.
What I'm seeing is that most folks who get into trouble are already losing 1 income in the household and/or have a major medical emergency. Tho one can find odd examples of folks with good cash flow who walk anyway (was that Chamillionaire?), most have an ongoing issue, but haven't gotten to bankruptcy levels yet.
Putting further draconian measures will ensure that many will simply not buy another place, and/or will spur an exodus out of the country. Look forward to falling or stagnating real estate prices for the next 10 years. Oh and highest evers for BK filings too.
Fuck it - we can still move to Spain - I heard their still financing 100% LTV
They'll change that rule somewhere down the line, you watch (changed time rules before). No way they can keep that many buyers out of the market when values reset, and people can afford to own homes again. Gotta' burn up inventory and keep the general housing market moving.
Fannie can spout all she wants...but she is a ward of the State.
And the State wants to avoid deflation in real estate.
So, the State will change Fannie's mind...when sales of existing homes falls even more...just you watch...
Agreed. This is a scare tactic more than anything else. Debt is the American dream you know and Uncle Sam canNOT operate without voluntary indentured servitude.
In fact, this tactic reminds me a lot of the recent reports of people going to jail over credit card debts or employers running credit checks now. Better pay your debts which were extended to you by banks which had no financial consideration or you will go to jail or not be able to get a job or worse yet, not be able to smoke crack...I mean borrow again to support your lifestyle.
Remember when credit was extended for the purpose of creating or improving a business to the point where returns would exceed interest? Those days are gone and perhaps never were. We now need credit so America can buy whatever clothes are the most fashionable, whatever car is the best, and whatever circus trinket being reported as being better than sex. So pay attention to the TV. FM2 is telling to keep paying or we won't lend to you again. HEAVENS NO!!!!!!!!!!!
This is propaganda: there is no jail for debtors in USA - you only can go to jail for contempt for failure to show up for a court hearing. Also, employers can only check your credit for jobs where creditworthiness is a legit requirement of the employment: like jobs where you handle the company's money (e.g. comptroller). Finally, it is also unlawful to discriminate against a person because of a bankruptcy. For now, at least, this is still America and you have some freedoms, even if TPTB don't want you to exercise them.
It's funny that you believe all this is true.
Propaganda campaign, pure and simple.
The strategic default cat is now out of the bag. If enough people do it, Fed, Treasury and banks are powerless.
This message will be carefully orchestrated. Watch for a morality play soon, perhaps vilifying some shill.
Already saw the morality pitch.. I can't remember which bank it was.. but they made sure they noted that one person's savings is another's mortgage.. and so on.. bla bla bla... It's all a scare tactic.. They want to turn people against each other. They know if we act together we could bring the whole thing down and cause a reset..
Soon they will point out that those that default will be destroying the saving and retirements of others.. I can see it all now.. Not a word will be mentioned about how banks falsefied information on applications to get underwriters to approve loans or how house values were grossly inflated..
The greed got out of hand and now the creditors want to put 100% of the blame on the consumers.. It's not going to work.. 15-25% of people will be defaulting and 50% will know or simpathize with someone that is defaulting..
They will HAVE to extend credit to those that folded during this crisis.. There will be ZERO growth if they don't.. Plain and simple..
"Fannie can spout all she wants...but she is a ward of the State.
And the State wants to avoid deflation in real estate."
I agree with you, they don't want deflation. Just one problem - if people have to actually qualify for a mortgage loan, prices are going to have to come down to clear inventory. Funny thing is, the GSE's just recently revised this rule. Currently, if you are foreclosed on you have to wait four years before you can go back, two years if you facilitate a short sale. "OK, that didn't work. Let's make it...seven years."
What is happening to America? That ain't the American way
what happened? i think you can find the answer here:
http://www.youtube.com/watch?v=3u5Nd9i1UiA
isn't it about time that ZH produced a documentary film on wall street practices? are you people with me on this?
GOOD. I'm sure we're all getting tired of indirectly paying for other people's financial mistakes.
What a blinkered view.
I understand why you feel this way. However, if you had a broader understanding of the US and world economy, you would realize that your view is one that TPTB nurture to preserve their own social status.
Furthermore, it is now clearly fallacious to think you're "financial conservatism" has any possibility of being rewarded. Your standard of living is going to decrease no matter what you do. Your taxes are going to increase no matter what you do.
It's been a good run for America, but the day of financial reckoning is closer every day.
You shouldn't be looking at the last 10-20 years and extrapolating. Instead, look back over the past 100 years and the number of world disrupting events.
Another one is at hand.
And your view of right and wrong is going to be severely challenged.
"Furthermore, it is now clearly fallacious to think you're "financial conservatism" has any possibility of being rewarded. Your standard of living is going to decrease no matter what you do. Your taxes are going to increase no matter what you do." You do have a point - but it's easier to sleep at night when one's finances are in order vs. when they're not in order. I can only control what I spend or save - but I can't control other people's urges to use their home as an ATM.
In all though - the US is screwed financially (in the long run) because the gov't constantly advocates a life of consumption over conservation.
But they gave 2000 prisoners 8k tax credits, and more than that to liars. So liars and cheats win over deadbeats? Ahh, this is America. And how about this data:
"More than half of all homeowners with modified mortgages fell at least two months behind in their payments a year after the adjustment was made, according to a federal report released Wednesday."
So no loans to deadbeats, but we will bailout the ones we already bailed out with our bailout that needs another bailout.
Since when do prisoners file tax returns? What income are they declaring? Just insane.
I guess ten cents per license plate can really add up over a life sentence.
Guess you did not hear about that scam. Not to worry, the IRS will simply garnish their wages.
Those that defy the will of the iron Fannie must be drowned in their own blood. How dare they defy the will of the almighty state?
Death by gas, injection, or the firing squad? Perhaps it would be more cost-effective to use neutron bombs.
I've an idea for a new jobs program: an American Eisenstatzgruppen. No one walks away from their obligations.
Failure is illegal. America is a nation of winners. Losing will not be tolerated.
Surrender your valuables. When we're finished with you, you'll beg for a quick death.
hysterical! great stuff. thanks.
Wouldn't a more appropriate punishment be to not allow any deductions on their tax return and tips and overtime will be subject to the 'new' inheritance tax?
Uuuuhhhmmmm, solution = walk away and RENT forever?
Deadbeats = New Warren Buffet?
+1
There is a LARGE and INCREASING segment of the population concluding exactly that. And, that includes well-off families that want McMansions.
It is FAR cheaper to rent your McMansion, with no tax nor maintenance liability, and no mobility/liquidity problems, than to be so stupid as to purchase an eternal "negative-bond" where you must make tax payments for all eternity.
Condo owners are figuring that out also -- tons of condos have NEGATIVE value, because "buying" a condo is merely buying a monthly payment you owe to the local association FOR ALL ETERNITY.
+1
I've leased a condo for years (since the divorce)... the owner's expenses are $100 a month more than the rent... and I know they have a relatively small mortgage. The condo fees alone are well over $500 a month (makes no sense to me at all)... my "down payment" went to gold mining stocks, a much better investment.
+1.
If I had known how much opportunity cost paying off my house had, I would never have done it.
"There is a LARGE and INCREASING segment of the population concluding exactly that. And, that includes well-off families that want McMansions."
True - when it comes to one's domocile, renting vs. buying has been an eye opener for a lot of people. I am renting a home legitimately valued at 1.6m and am paying 5K a month rent. If I had bought this place with 20% down, I'd be spending 9K. No tax advantage, and no downside valuation risk (four homes in the immediate area, three are short sales).
I like where we live and would probably buy here, but I'll just wait and see what the market brings. No hurry.
deleted
Yes, walk away and rent until you can buy some land, then build graudually like, probably, the great majority of people in the world when they really want a house. Or just rent. And if you have retirement funds, take them immediately before they are taken from you. Avoid debt, period.
Those who live in glass houses...
If it is bad for communities, I wonder what it will be like when a sovereign walks away from its debt.
+1
The US walked away from its sovereign debt in 1971 when Nixon defaulted to the world by not exchanging gold, showing he was indeed a crook and that the US became the biggest crook of the world, leading to every expanding credit/debt and here we are, bankrupt, pretending and extending and the US will be soon defaulting again on social programs, retirment and other unfunded liabiliies.
Day late, dollar short.
the big playas ($5.4 billion nyc apartment complex) don't have a problem doing a strategic default, and i didn't hear anything about them getting penalized by no credit for 7 years. this is just one more attempt to help the big bankstas by demonizing the borrowers. if the banks would negotiate/modify in good faith this could be avoided.
http://www.nytimes.com/2010/01/26/nyregion/26stuy.html
Yeah - but they would have to print the loan loss at that point. Can't have that. Pokes that capital ratio where the FASB doesn't shine. LOL. Everywhere I look, there is a rock and a hard place - and everyone crammed in-between them.
How true, Careless. But good faith, from a bank? Isn't that expecting a bit much.
The only reason banks and GSEs are complaining about strategic defaults is that the value of the properties was fraudulently inflated in the first place and the collateral isn't worth what the banks were charging for the loans..
What a Two Faced Fk.............this shit has gotten so bad, I almost want to move to Rwanda.
Everone with half a brain knows Bawney Fwank, and the Clingons,
FORCED them FM/FMc, to loan to any moron who could walk in and with assistance make an "X".
A little theme music maestro!......."Too much, TOO little, TOO late".
Bullshit! Die FNM, FRE!!
This won't help home values - unless equivalent rent values come into play.
So, FM / FRE aren't going to loan to American's any more?
With these stringent requirements, we are doomed.
Next they'll ask that you actually have collateral, a down payment, credit history, and a job...what BS.
"Walking away from a mortgage is bad for borrowers and bad for communities."
Know what else is bad for borrowers and communities? Blowing a huge price bubble that causes borrowers to have to borrow lots more money to buy the same crappy house, and then letting that bubble deflate, leaving the borrowers with a crappy house they can't sell, and a huge debt that doesn't shrink with the value of the home.
But I guess FNM only punishes OTHER parties for doing things that are bad for borrowers and communities.
+1
And, I'll add that the existence of Fannie & Freddie are bad for home owners and communities.
Their policies encourage speculation, not ownership. Normal people all over the USA are screwed, wishing they never got suckered into the boat anchor that is the "American Home Ownership Dream".
F&F hurt home owners, and always have. They are just like "seller-downpayment-assistence" programs -- they are fraud, which FINALLY were made illegal (after screwing people for many years).
On the bright side, F&F's days are numbered. They won't be made illegal (like they should). Rather, they will be murdered in the back alley when Congress decides that's the best way to cut liability. "Sorry, Johnnie, my close personal childhood friend, it's just business."
Does anyone here know the name of the joker that runs infomercials about making currency in real estate, provided you buy his book? I never watch it long enough to find out.
So, how many tens, if not hundreds of thousands folks will effectively be unable to get a mortgage for the next several years if this sticks? Not that many of the defaulters should have received one in the first place.
Not sure that this will be much of a deterent to the strategic default. If the economics stink, default will still be very attractive, and the only viable, quick option for some. After what many of these folks have been through, if they actually thought they had a real chance at homeownership, many probably will not have any desire to reenter the real estate market for quite some time to come.
7 years without credit versus, say, eating a loss of $500K. Pretty good ROI.
Is a strategic default worse for your credit rating than a short sale and a deficiency judgment? If either would prevent you from getting a loan, you may as well eat the elephant that will do you the most good.
7 years without a new mortgage is not a very long time if you're seriously underwater and staying in a place would bankrupt you.
And this just means FNM won't underwrite the mortgage, as of now - I don't see anything preventing a bank from (Gasp!) holding such a mortgage, or (gasp) a seller from doing a land contract. Or between a couple years of rent-free living and several more of renting at declining rental rates, you might even just save up the cash to buy a house at the much lower housing prices likely to exist in the future.
This may not be shooting blanks, but it is shooting a .22 short.
And FWIW, I am current on my mortgage and planning to stay that way... but I bought wisely, put an actual downpayment on it, didn't refi, and I'm not underwater either.
"but I bought wisely, put an actual downpayment on it, didn't refi, and I'm not underwater either."
By "bought wisely," you mean you bought at some point other than in 2005-2007, right? Because if you bought during those years, regardless, you bought at the top of the bubble, and have lost a good deal of value (whether it's in the form of lost equity, or an underwater loan).
The only people who can be truly smug about having "bought wisely" are those who sold in 2005-2007, bought U.S. Treasuries, and used the interest to pay rent to suckers who still owned real estate.
Now that sounds like a plan. Especially since the max rental period would be seven years or until the next policy reversal.
Who knows, you might get that next dream home in 2 or 3 years. Best to wait for the next stimulus tax break if you pay taxes.
Bought wisely? Did you buy it as a futures option? You're assuming we've hit the bottom even though prices drop daily.
I've said it before and I'll say it again; Apple is in a bubble.
So is the Universe.
Is there a short for that?
Go long entropy.
Which man has nothing to do with.
Agreed.... and my money is where my mouth is. (however painful it may be at times)
Somebody create an AAPL triple short ETF!
Kettle, meet pot! FM is going to discipline the small people? Ripe, very ripe.
And like Terence Edwards or any of the other finger puppets at FM have any say-so in the matter. He will be called to the WH and relieved of his command.
That's like the hangman preaching from the gallows about the 6th Commandment.
Strategic defaulters don't need FNM or FRE anyway. They buy their neighbors house at half the price of theirs move in and stop paying on the old one. They typically have good credit scores, have savings and enough math skills to figure that the banks appraiser was full of crap.
It is the banks that are in breach of contract, not the "defaulters". The mortgage said how much the house was worth and it lied.
God bless them for beating the banks at their own game.
delete
Off topic a bit: The volume on the last minute of DJI trading today was insane. And yet, it didn't go anywhere. Gee, how can that be?
During the Great Depression legislators felt that losing your home was punishment enough. Deficiency judgements on mortgage defaults were suspended. This accelerated the end of the Depression.
FNM is committing borrowers to debt servitude and prolonging the housing deflation. If you can't walk away, you won't be able to spend elsewhere or be able to afford a home when the turn finally comes.
These are the ways of a Japan-style 3-4 decade deflation.
7 years, huh.
That should be right about the bottom of the RE market after all the prop ups have failed.
I read a story today about creditors using police resources to jail debtors. The bail is set at the debt amount and is turned over to the creditors.
uh, exactly where did you read that because it doesn't conform to anything available to creditors in the US.
The Star Trib of Minneapolis had the story I believe. And it is fairly frightening. Debtor's prison back on!
http://www.startribune.com/investigators/95692619.html
I suppose we could bring back debtor's prisons as in Dickens' time. Unfortunately without income, most inmates could never pay the debt so the creditor was still stuck for it. Unless someone had a rich relative or really good friend on the outside.
BTW Dubai still uses this system. Which is why a lot of foreigners got out real fast when their paychecks stopped, even if it meant leaving a new Lexus in the airport parking lot.
Non-issue. I beleive they are talking about FHA loans, right (the 0-3.5% down type)? non-FHA loans require 10-20% down. Strategic defaulter are just that: Strategic. They are planning on walking away, rent for two years, save up 20% and buy with a non-FHA loan. I think everyone here on ZH knows when ever a government program is intended to stop something, the rules are written so full of loop holes, they dont stop anything.
Planning to, yes. But, instead of saving they will spend the money on a new flat-screen, going out to eat, the latest Apple POS device, and maybe one of those cheap Carnival cruises. U. S. citizens don't know how to save.
Nah, not forever just for 7 years. Then you can enter the game again with a clean slate if you want.
You know what else is bad. Paying 500,000 for an asset at compounding interest that sold for 250,000 without the compounding interest degraded in value from 250,000 to 180,000 from wear and tear while being magically valued at 325,000 at the end of thirty years due to inflation.
Fucked over accounting, fucked over valuation, fucked over money systems are also bad for faith and honesty.
Screw mortgages. Screw the entire building industry who builds trash paper fucking boxes and sticks giant freaking price tags on them. Screw the economy and the banks that make it.
truer words were never written.
Fuck. I wish I had said that.
Correct! Having been in the remodeling business I can tell ya that new homes are built just barely strong enough to hold up the granite counter tops. The exterior trim is finger-joint lumber milled from fast growth pine that is like a sponge. Rots in about 2 years. Junk. And don't get me started on Dryvit! I see EIFS installed properly on about 1 in 10 structures, almost always at or below grade, and not sealed around wood trim. When homeowners and landlords drop those termite contracts to save a few bucks those houses will be a termite smorgasbord.
http://video.google.com/videoplay?docid=2825156611776297279#
Yes, you WILL PAY US BACK the fucking money we lent you that we never actually had!
If AIG goes BK, they get $200B. You go BK, INTO THE PRISONS
+ abs(the national debt)
the legacy of Bernanke fed is ... moral hazard.
And how exactly will Aunt Fannie know if someone is "able to pay or did not seek a workout in good faith with their lender"? They don't, so this is basically putting people on double-secret probation. What this smacks of is the GSEs are seeing a lot more strategic defaults, or are afraid there will be a lot more to come. Welcome to moral hazard, and the next monkey wrench in the economy.
"Double secret probation" exactly! They know there is nothing they can do about it so they publish some headlines to scare the potential defaulters.
Exactly!! Nothing but a scare tactic!! If they repo the home, you owe nothing more to the crooks. They got the collateral which was the home. Any difference they try to claim you owe automatically becomes unsecured debt, that you don't ever have to pay. They use these scare tactics to make people pay. Smart people, who understand the laws, and educate themselves, know better. The most they can do is get a judgment on you that last 7 yrs and you can rent that whole time, then come out looking good.
Thanks Tyler. Finally someone on my side considering the god darn aapl products. I quote myself: "A large part of Apples consumer base consists of young/unemployed pot smoking hippies".
Corporations walk away from bad business decisions all the time. Home owners are starting to see through this bullsh**t double standard.
And while I don't approve of squatting in a house you are no longer paying a mortgage on and taking the money and going on a cruise with it, if the loan is non-recourse, than too bad, banks. The deal was if they don't pay you get the house. Well.... you get the house. And I hope you choke on it.
I have never heard a business walk away from a loan without having to give up the business
You wanna try CIT just back a few months ago? Filed Bankrupt, canceled all their stock, got out of bankruptcy in less than 30 days, full credit lines back in place, issued new stock at $30 a share, when their old stock traded for 10 cents, and they right back in business with full credit ratings.
We can go down the GM road too if you want? I hope you were just being sarcastic LOL
So does this mean that the CEO of FM will be summoned to the White House to answer to subordination charges?!!
Does it really matter? If you walk away and default your credit score will be toast for 7 years anyways?
To me seems like they just want to try and scare people.
Just like a barking dog.
pods
When will the sheeple realize that the burst housing bubble was filled with cyanide gas.
Just in case anyone believes Harpers BS propaganda about Canada being different, banks not packaging mortgages for resale (not true http://www.tdcanadatrust.com/invest/fixedinc/icrcipmb.jsp ) etc, check out the CMHC. I've heard some say that as long as you qualify for government backed mortgage insurance (CMHC), the banks don't care about your numbers to qualify, you just became risk free (except to taxpayers).
Yup, it is even worse in Canada because, at least in the USA, if you wait long enough, eventually the inflation should wipe out negative equity without the interest rate changing on a 30-year fixed. Whereas, in Canada, once the housing market heads south, the banks have every incentive to hammer interest rates higher to extract ever-increasing amounts of cash from borrowers.
Should be fun to watch in Canada; get yer popcorn ready!
This is very simple.
http://openjurist.org/961/f2d/459
http://openjurist.org/443/f3d/373/wilson-v-draper-and-goldberg-pllc
Attorneys are DEBT COLLECTORS, move for declaration in federal court as to the status of the attorney for the suing party OR the alternative is to drown in EQUITY.
There is no loan and there is no funds lent, your swimming in the law of fiction. Either get out of the water or drown.
Wow, that's a heavy read. I need to digest it... couple of issues. I think i understand now how the debt is created...seems fishy. The bank doesnt acutally make you a loan per se, the just add a line item to their ledger based on your signature? So, no funds are lent, because they didnt have the funds to lend? just to power to create a debt out of thin air, and then you have to pay it and they sell the paper or something like that?
We live in fiction. All credit is created out of thin air. An attorney is nothing more than a debt collector for a debt that never existed, which SHOULD conform to the Fair Debt Collections Act and for good reason. How can an attorney serve you when in fact they are precluded from doing so... see Fair Debt Collections Act. Opps.
Anyone being sued by a debt collection should move for declaration in federal court as to the status of said debt collector. In many cases, the standing should be challenged first, most of what is going on is fraud.
There is no home loan if you see the documents presented during closing.
or maybe like this...the bank throws a party and charges a fee for jungle juice...everybody thinks there is rum in the punch but in reality there is none? While people are acting drunk because its a mass delusion some people are picking their pockets....hmmm...
As far as Fannie Mae, debt collectors are subject to the Fair Debt Collections Act, lawyers are subject to the FDCA as well when they move to regularly collect debts. Furthermore, in non-recourse states the house is theirs and the deal is done, although I have seen these guys go after people in non-recourse states. A debt collector is a public right.
The Fair Debt Collections Practices Act clearly elucidated that a debt collector is prohibited from moving a legal action to collect debts. Read 15 USC 1692i.
The Attorney standing as the agent of the post defaulted foreclosing party is the statutory debt collector, who is moving an unlicensed practice of law.
“For these reasons, we agree with the Seventh Circuit that the Act applies to attorneys who "regularly" engage in consumer-debt-collection activity, even when that activity consists of litigation. Its judgment is therefore Affirmed.” Heintz v. Jenkins 514 US 291,299
Upon first notice from a debt collector it is important for said alleged debtor to verify alleged debt and to notice debt collector to no longer contact said alleged debtor according to the FDCA.
too funny
and just when morals were becoming hazardous, damn i'm always buying high
Nothing anyone says today will matter in 7 years. We don't even know what 7 years from now will look like. Yawn.
The news flow out of <a href="http://www.socialnews.biz/tag/Fannie%2BMae">Fannie Mae</a> seems to be that they are scared to death that borrowers have 0 incentive to stay in underwater loans. The underwriting often required nothing down and no personal liability. You mix the two together and all you have left his hope that the borrower is stupid or feels some kind of moral obligation to stay in the loan. This is Fannie's best attempt to persuade them not to do it. Of course, years down the line they'll lift the penalty anyway.
The "personal liability," which you wrongly assert doesn't exist, takes the form of an attack on one's credit rating. The collaborators in this little vendetta are the credit score mercenaries - themselves a corrupt cabal - and the government that goes along with the whole game.
It's like Greece on a micro level when gangster banks, themselves broke from gambling debt, levy a speculative attack with the help of Moodys and the NY Fed in order to further punish, pulverize, and ultimately kill off the "worthless eaters" who don't do "productive" work like . . . banking.
"Whatever you do, PLEASE don't throw me in dat briar patch!"
goodness me, all this fuss from Barney Mae, who'd a thunk it.
all worried about the spreading of moral hazard, the standard was set by none other than the Treaserve.
If you elect to file BK, you can get a new FHA loan 2 years post BK, according to the FHA guidelines. I have no idea how FHA will enforce this requirement.
Ize skeert!
I've got two words for you, Fannie...
"F@CK and "YOU."
I'll rent for the next seven years if for no other reason than not to support your corrupt bullsh!t.
There are countless apartments nice enough to rent for eight years.
FAIL.
Is the ongoing cash giveaway to the banker parasites a "strategic default"?
The people who were lied to and screwed over SHOULD refuse to pay the liars and welfare cheats who 'demand' balloon payments and other such nonsense.
The professional bullshit shovelers who lie for a living have no natural right to any money. Those scumbags deserve nothing but the middle finger.
Instead, they get government sponsorship . . . free gratis.
Thanks, capitalism.
i guess i should either lowball the homebuilders or not buy at all....lol
19 million empty structures and rising and these bufoons are making long term threats?
How many millions of Americans can plan seven days in advance much seven years in advance after $12 trillion was wiped off their balance sheets with credit default swaps that had no capital or collateral behind them written on fraudulently packaged mortage backed securities and collateralized debet obligations packaged by sociopaths?
Fuck credit scores and credit ... they only enable you to become an endentured servant. Live without credit or debt. Starve the bankers/slavers. Store excess in gold, silver.
Let ALL UNDERWATER HOME OWNERS DEFAULT (ALBEIT AFTER CONSULTING THE LAWYER TO KNOW JUST WHAT THE DAMAGE WILL BE AND WHAT WILL BE THE RECOURSE) enmasee enmassee!!
Let us watch Fannie go after them with TAX-PAYERS ONLY ..
Let us see how long that takes!!
Here is a great chance to SCREW THE GOVERNMENT OVER WHAT THEY HAVE BEEN DOING FRO THE LAST 2 YEARS!!
Default ENMASSE!!
That is the way to teach this bail out nation A GOOD LESSON!!
Don't delay .. DO IT NOW ..