Tag Archives: Strategic Default

Fannie Mae Changing Guidelines For Strategic Defaulters

Posted on by in Power Hour, Techniques  |  3 comments
fannie-mae Kevin and Fred talk about strategic defaulting and touch on the ethics of it… Also, as promised…  Here are some of the Fannie Mae info: This is for conventional loans. Currently the waiting period for purchasing a home after a foreclosure is 5 years. As of October 1st 2010 the waiting period will be extended to 7 years. Summary of Waiting Period Requirements
  • Bankruptcy Chapter 7 or 11 = 4 years
  • Bankruptcy Chapter 13   = 2 years from discharge date
  • Multiple Bankruptcy Filings = 5years if more than one filing in the last 7 years.
The Requirements for Deed in Lieu of Foreclosure, Preforeclosure Sale, Short Sale are dependant on the loan to value amount:
  • with a maximum loan to value of 80% after 2 years.
  • a maximum loan to value of 90% after 4 years and
  • is back to “normal” after 7 years.
Here's a link to Fannie Mae's official press release...
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