Although I have been following this story for a while, it is now going to be reality starting in March. Here is the deal, if you have a mortgage owned by Fannie or Freddie, current on the mortgage payments, under certain circumstances, you can walk away from the debt and once again, the taxpayer picks up the tab.
According to the article mentioned below, the folks that qualify are those with illnesses (I DON'T FEEL SO GOOD), job changes and other reasons. I can't even imagine what other reasons could be. Maybe, they just don't like their neighbor. I wonder if that will qualify as an "other reason?" What an unbelievable reason to expand short sales.
I thought we were going to focus on lowering our National debt. I guess, one positive ... home inventory will improve this spring.
Click here for full article: Fannie to Let On-Time Borrowers Walk Away From Homes
By: Bloomberg News
"Fannie Mae 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."