BluefoxToday blog : Fannie Mae Guidelines for Foreclosures and Bankruptcies

Thanks George.  This is just what I was looking for.  You're a trooper.

Some of these guidelines are quite Draconian.  I believe that is the plan. 

Thanks George!

It's nothing personal, we don't dislike your clients! These are the guide lines.

Bill

PS: What is Draconian about forgiving a borrower after they steal default and don't pay the bank? If they ran out the front door with the bank's money they go to jail for 10 to twenty years, default and all is forgive in a few years seems very forgiving.

Thanks, this information is very useful. Aaron

George -

What is their definition of an extenuating circumstance that triggers the shorter periods?

Hi George -- This format is very user friendly, I'm bookmarking it for my foreclosure resources.

Hey George...

Thanks for the info ...now I can refer back to it when I need to as long as it doesn't change again.

Thanks, George. I'll put this with the other and have something to share with others.

Thank you George...I'm re-blogging you and I will subscribe to your valuable blog

Based on the fact that Bank of New York Mellon Trust Company foreclosed on one of my clients yesterday (a widow who had lost her job while caring for her dying husband, and was then forced to relocate out of state with her children for a job) -  just DAYS before we closed on the property (yep, we had a buyer at fair market value), this really pisses me off, especially when the bank put us off for over a week so they could check on all the flood victims around here (while we patiently waited).  **phew... sorry for the run on sentence, I'm just HOT right now!**

So why am I pissed off?  Just who decides the extenuating circumstances?  The same banks pulling this cr*p?  Pardon me if I don't jump up and down for joy.  Circumstances happen in people's lives.  If they've built back up their credit and are able to put money down, then they should be allowed to try again.  (**disclaimer:  I'm talking about those in true dire straits, not those who fraudulently got money and then bailed!)

Oh and William - unless you know what someone's circumstances are, you may want to hold off on judging so harshly and with such a broad stroke of the brush. 

Lenn, you requested it and I felt that it was my duty to comply :)

Bill, I guess if I was involved in a debate, I could take that issue and argue for either side, because I have seen first hand how these guidelines may have not been strict enough in some case, and unfair in others.  Circumstances are not always as clear cut as the guidelines would like them to be.

Aaron I hope you  make good use of it.

Jim, health related issues that can be documented would be one of those reasons and other circumstances like that.  For example the Homeowner was never late on their mortgage or other financial obligations up until they had a health issue that prevented them from working and that can be established as the reason and time frame for the defaults.

Chris I am glad that I could be of help.

Neal, nice to see you buddy.  If it changes I will try to provide a revised chart.

Glenn. it is good to know that this will be use by others.

Fernando thank you.  hopefully I will be blogging again more often and providing other information like this.

Victoria, even if she had avoided foreclosure these guidelines would still apply to her the same as if she had been foreclosed on.  Once the foreclosure process is started these guidelines kick into place. 

As far as your question goes well written letter by the Borrower would have to be written in detail and backed by documentation to show the reason for the bankruptcy or foreclosure.  And then the Underwriter would have to further make a case for making an exception to the rule.  Loans being done based on exceptions for extenuating circumstances are few and far in between.

Thanks for the information today...

Thanks for the information today...

How about loss of employment forcing taking a job out of state?

George, even if she had the foreclosure expunged?

Patricia, thank you

Jim, that one could be a coin flip. It depends on the circumstances surrounding that and how convincing a write-up the Borrower puts together, and how believable the Underwriter finds it.

Dawn, yes even if they avoid the foreclosure.  What happens is that the Bank holding the mortgage will report it on the Credit Report as a foreclosure once they have started the process, and I have yet to see any Bank remove it afterward even if it is requested.  A lot of times you would not know that it is being reported as a foreclosure because they do not state foreclosure, they use a code "08"  sneaky isn't it.

George,

I can see both sides too!

After the earth quake in California that took out so many roads and homes Fanny let us finance people who walked away from the rubble and mortgages as soon as the foreclosure or a deed-in-lee was recorded. We could go to 97% LTV it was a great program. The difference was this was an act of God not a strategic default!

I'm apposed to those who think defaulting should carry no consequences! I remember when it took 10 years! Banks don't have much money of their own, they have depositor's money and/or tax-payer's money! Those depositors and we tax-payers are entitled to our money back!

Now if you want to talk about rebuilding credit, I'm infavivor.

Bill

Thanks, I always appreciate data and a national perspective.

George,

These are Fannie Mae guidelines, and it seems that it is possilbe to get conventional financing much sooner with higher Down payment.

Also, it is not that you got to be foreclosed ipon, it is filing of Notice of Default and you are done/ like with bankrupcies. You can end up not being approved, but the record stays

George, you are always putting forth great information for all of us.  thanks!

Bill we agree on that.  For me it comes down to whether or not the homeowner had control over the the reasons for the foreclosure.  If they lost their house because of health reasons, or the company they work for shut down or sent their job out of state and they could not pay their mortgage for reasons they did not have any control over, then I think they deserve a second chance as soon as possible.  If they lost their house because they managed their finances poorly or because they walked away from the house even though they could still pay the mortgage, then I think the time periods should even be longer.

Lawrence you are welcome.

Jon, you are on the money with your statement.

Judi, thank you for the kind words.

George can't thank you enough for the mortgage info you provide to us.

Jennifer, thank you.  There is more information that I need to post I hope I can free up the time to do it.

Great list, makes it real clear ! Were they enforcing any of this in the last decade ?????????????

Thanks for posting this George. Great information to pass along.

Good information George as people are always asking about these things.

I re-blogged your first chart... and I'll be reblogging this one now! Thanks!

Thanks for the valuable information.

Ralph Gorgoglione

Los Angeles Real Estate

Thanks for creating a chart for everyone to follow.  Excellent work.

George,

Thank you for the great info! 

Ann Hayden in Wildwood, MO

Thanks George for a great list. very user-friendly and helpful.

Thank you, George. This is very handy information - especially presented so clearly. As others have mentioned: people are always asking...

This is great information, and it is important that we understand the timeframe for the different situations.

This is good information to have it is just unfortunate that the banks will not work with homeowners to avoid half of this.

George,

My prediction is that changes will come and the guidelines will get a bit more lenient. There are a lot of people who were great citizens before this mess and will be so again once it clears.

George, these last two posts of yours have been so very informative...including the comments.  Like Glenn, I now have something to share with clients who have bankruptcies/foreclosures in their past.

George, Thank you for posting this chart for everyone.  It sure helps to see it in that format.

George, Thank you for posting this chart for everyone.  It sure helps to see it in that format.

This is great infomation, thanks for sharing!!

"What happens is that the Bank holding the mortgage will report it on the Credit Report as a foreclosure once they have started the process, and I have yet to see any Bank remove it afterward even if it is requested.  A lot of times you would not know that it is being reported as a foreclosure because they do not state foreclosure, they use a code "08"  sneaky isn't it."

That's important for those who can't pay their mortgages and are going through the short-sale process for no apparent gain.  Might as well stay in your home until the sheriff comes to throw you out and put the money in the bank that you would have spent on the mortgage. 

Michael, lenders like the one I work for were, that is one of the reasons why we did not get caught up in a lot of the mess that went on.

Missy, glad I could be of service :)

Bill I hope you make good use of it.

Michael, thank you.

Ralph you are welcome

Kyle thank you

Ann you are welcome as always

Bruce i always try to keep things simple because that is the only way that I understand them :)

Christine, you make a very good point.

Damon, you are right, but in many cases the homeowner is so far over their head that even if the bank worked with them a foreclosure will still end up taking place in the near future.

Esko, you are right.  Lenders are in the business of making loans, and when they slow things down to much, the rules will change to produce more business again.

Nick thank you and hope others make use of this information as well.

Judi, I am glad that I could be of help.

Kate you are welcome.

Gail, yes and no.  Even though Mortgage Lates are bad, they are better than going into foreclosure.  Lates prevent you from purchasing for about 12 months were as a foreclosure will be 3 years for FHA and 5 for Conventional Loans.  Even if they go into a Short Sale or Deed-In-Lieu of Foreclosure it is still a little shorter.  I guess it comes down to what the homeowner hopes to do in the future.

George, just wanted to stop by and thank you again for your time in the service in the Viet Nam War. We appreciate your and your family's sacrifice, so that we could enjoy a peaceful day.  We hope you had an opportunity to relax today George, you deserve it. Thanks once again and happy Memorial Day 

Just wanted to remind everyone that if the real estate market hadn't crashed ... most homeowners would have been able to sell their homes in the normal manner.

George.. Thank you for posting this.  These are guidelines I was looking to see in writing.  I can always count on you for up-to-date information.