Walk Away and You Will Pay

Fannie Mae may ban barrowers who walk away from their homes from obtaining new mortgages for seven years from the date of the their foreclosure. This action is specifically designed to stop those people who use ‘strategic default’ tactics. This practice of walking away is growing rapidly in areas where the housing values dropped sharply and owners no longer have equity in their homes. Last February, 12% of defaults were caused by homeowners who could afford their mortgages.