Deed-in-Lieu: Fannie, Freddie To Allow Walkaways by On-Time Borrowers: Mortgages

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Deed-in-Lieu: Fannie, Freddie To Allow Walkaways by On-Time Borrowers: Mortgages

Fannie Mae (FNMA) and Freddie Mac will let some borrowers who kept up payments as their homes lost value erase their debts by giving up the properties, helping Americans escape underwater loans while adding to losses at the mortgage giants bailed out with $190 billion of taxpayer money.

Non-delinquent borrowers with illness, job changes or other reasons they need to move will become eligible in March to apply for a so-called deed-in-lieu transaction that erases the shortfall between a property’s value and the size of its mortgage. It follows a change in November that lets on-time borrowers sell properties for less than they owe, known as short sales, wiping out the remaining mortgage debt. Normally, the lenders could pursue people to recoup their losses.

“It’s an extraordinarily generous approach for companies still in debt to American taxpayers,” said Phillip Swagel, a professor at the University of Maryland’s School of Public Policy in College Park, Maryland. “We’re giving people an incentive to walk away, right when the housing market is starting to right itself.”

Previous foreclosure-prevention programs were designed to help only borrowers on the verge of losing their homes, in effect penalizing those who kept paying, according to homeowner advocates such as Julia Gordon, director of housing finance and policy at the Center for American Progress in Washington. In some cases, servicers have advised borrowers to stop making their mortgage payments to qualify for help, leading to evictions if their applications are denied, Gordon said.

Rest here…

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4closureFraud.org

 

Comments
7 Responses to “Deed-in-Lieu: Fannie, Freddie To Allow Walkaways by On-Time Borrowers: Mortgages”
  1. Sue Em says:

    Oh how generous you suckers! With the creation of mers the banks didn’t pay billions of dollars in recording fees all over the US. This is money that belongs to our communities. Pay it back Freddie and Fannie – on top of the bailout money you still owe the American people. You deadbeats!

  2. This appears to me to be a desperate attempt from Freddie and Fannie to collect more properties they do not own, for more than one reason. look up Freddie and Fannie shell game by Shawn Neman, Freddie and Fannie are a shell game involved in this con, the same as MERS. With the exsposure of the Independent review sham suppressing mortgage fraud from a the lesser to the greatest to 80 % of the mortgages looked at suppressed by the banks and promonto company, and the LIBOR scandal. The public is going to see lawsuits that will bring out additional guilty pleas, with HSBC and USB banks already pleading guilty, being admission all LIBOR rated loans which the majority are LIBOR rated, are voidable due to illegal activity by the banks. It appears Freddoie and Fannie are not in a position to forgive anything,they dont own, and are not a party of interest to. On top of this crime of the century atop the mortgage crimes of a century , are the Financial Economic harm damage claims coming forth now. After the Wall Street and the Financial Crisis: Anatomy of a Financial Collaspe” report by many experts with thousands of documents proving beyond a doubt the financial crisis was man made by the banks S&P and fruad appraisals, directly causing harm and damage of millions upon millions of jobs and incomes, Freddie and Fannie must be in a panic to collect as many homes as possible. Itr appears to me Freddie and Fannoie are not handing out sugar for now reason. Freddie and Fannie are predators handing out sugar coated schemes to unlawfully seize properties the homeowners own outright and are not under water.

  3. So one more way for them to try to legal up the paperwork.All this means is you won’t owe past what you already owe.Wow more bad behavior on the banks part and this will just continue until they are completley stopped which is not going to happen anytime soon.The travesty of justice continues to go on and escalate to new proportions.What a farce.

  4. charley rice says:

    OH BOY, THE DECEPTION OF THE CON GAME…

    THEY’RE NOT THE HOLDERS IN DUE COURSE.

    ONLY the LENDER on THE DEED OF TRUST, who’s OUT OF BUSINESS had the right….

    JUST SEND FANNIE AND FREDDIE a FDCPA letter MAKE THE PROVE THE DEBT, and watch what HAPPENS!

  5. wickster1959 says:

    oh ya where were they when the sherriff was throwing me and my sick daughter me in a wheel chair out because i was hurt on my job and couldnt walk we are still homles that happened in 2011 what can they do for us

  6. sarah says:

    The lie about protecting taxpayers that Swagel uses is more than just disgusting dishonesty.
    The public’s interest, were they to have a say in the matter, is not to protect Banks or the housing “market” as determined by the kleptocrats and the FIRE sector.

  7. Sarah says:

    Swagel is extraordinarily embedded, propaganda from so-called academia. Generous? Give the taxpayers a break. Priceless nonsense. If Swagel could drive his car off of the UMCP campus, he would see 1000s of examples of housing attacked by FNMA liars loans that were a joint effort between the Banksters and their ownership of Treasury. Walk away, in many states you don’t have to pay.

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