Unpaid Mortgage debt May go to Collections

Unpaid Mortgage debt May go to Collections

According to The Los Angeles Times (Oct. 13, 2013)

Fannie Mae and Freddie Mac have stepped up their program to collect unpaid mortgage debt from “strategic defaulters”. The term strategic defaulter was coined for homeowners who opt to default on their mortgage even though they had the ability to pay.

The Federal Housing Finance Agency (FHFA) that regulates Fannie and Freddie is pushing them to pursue judgments against the homeowner forcing him or her to pay the deficiency after a home is sold thru foreclosure. This will take place if a home is sold at a foreclosure but the proceeds does not cover the outstanding balance of the homeowner’s loan..

 So far, the office says it has identified about 58,000 foreclosures that Freddie Mac did not refer for collection – and estimated deficiency of about $4.6 billion.

 Some states do not allow deficiency judgments, but in more than 30 states and the District of Columbia, they’re permissible. Florida is one of the states that allows Fannie Mae and Freddie Mac to seek repayment of lost funds.

 
Ainsley Daux is a Licensed Realtor in Florida, he specializes in short sales, working with first time home buyers, working with investors, and selling Florida Homes.

 Ainsley  Daux

Lic Realtor
Florida Realty
(813)546-1954