Arizona Pre Foreclosure & Contemplating A Strategic Default?
Homeowners in an Arizona Pre Foreclosure situation that are contemplating walking away from their mortgage need to read this.
FNMA announced a change in the timeframe to purchase after a foreclosure. Beginning July 1st, 2010, homeowners will be forced to wait 7 YEARS before purchasing another home backed by FNMA (previously, there was a 5-year wait).
This new announcement will dovetail into the announcement that they made on April 30th, regarding waiting periods for those homeowners that choose to short-sell their homes. Basically, homeowners who choose to work with their lenders will be forced to wait anywhere from 2-7 years, depending on whether there are "extenuating circumstances", and the amount of down payment that a homeowner chooses to put down (i.e. with no "extenuating circumstances", a homeowner who chooses to put down 20% will only have to wait 2 years, while a homeowner who chooses to put the minimum required down will have to wait 7 years). Both of these changes will go into effect on July 1, 2010.
Regardless of where you stand on the issue of "strategic defaults", FNMA is making it very clear that they would much rather see a homeowner in an Arizona Pre Foreclosure situation at least try to attempt a short sale, rather than simply "walking away" and handing their home back to the bank.
The bottom line is this: By simply "giving up" and handing your home back to the bank, you will not be able to purchase a home through FNMA for 7 YEARS (unless you have "extenuating circumstances" that led to the foreclosure). If you short sell your home, you will be back in the game in as little as 2 YEARS. To make things easier to digest, please see the following FNMA announcements that go into effect on July 1, 2010:
What Are Extenuating Circumstances?- Download the Seller Handbook (updated 5/27/10) and go to page 427
Please take a moment to familiarize yourselves with the links provided. They are very informative, and will help you to better understand these substantial changes.
Bob Hertzog Summit Home Consultants www.forsalephoenixhomes.com Copyright © By Bob Hertzog 2010 *Arizona Pre Foreclosure & Contemplating A Strategic Default?*
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Copyright © By Bob Hertzog 2010 *Arizona Pre Foreclosure & Contemplating A Strategic Default?*
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