Fannie Mae may be given legal rights to sue to the fullest extent of the law those who have blatantly refused to pay their home loans when in actuality they had the money to do so.

The amount of foreclosures that most likely will happen this year will be at least 2.6 million. What is worse is that approximately 11 million owners are severely underwater as far as their homes are worth.

These strategic defaulters who could obviously pay their mortgage but decided it was not worth their time or money and who did not complete a workout alternative in good faith will have to face Fannie Mae who plans to limit their access to government-sponsored home loans for seven years.

There will be lawsuits filed against homeowners who have in essence committed lending fraud due to refusal of payments by many of these disgruntled lenders. Any court order or winning lawsuit will force the buyer to pay any unpaid amounts or balances that are left after the house is sold.

California plans on limiting the use of court orders handed out to obtain deficiency judgments. If the home loan was for refinancing, the order will be granted. If the loan was for a purchase, no court order.

But what about the possibility of these homeowners who knowingly defaulted on their mortgage loan not being able to attain government sponsored loans in the future?

Think about it for a moment: What if Fannie Mae took the stance that any government sponsored loans such as a FHA loan would not be available for ones who simply walked away from their home loan?

And all this because the homeowner purposely walked away from their St Louis mortgage responsibility due to being underwater and not because they couldn’t pay but simply wouldn’t continue paying.

So how long could one be banned from doing business with Fannie Mae? Well at this point, Fannie would no longer buy or guarantee a home loan for about seven years.

The decision on whether a homeowner will continue to pay on a house where its value is now below what the loan amount is depends on how much the house is upside down according to data from CoreLogic.

On the other hand, consumers will more willingly walk away from their St Louis home mortgage loan when the value of their home drops 25 percent or more under the home loan amount.

If we go back to the month of March, about 31 percent of foreclosures were described as strategic walkaways which was compared to only 22 percent in March of 2009.

As angry as this makes some people, there is a large group that is clapping at Fannie Mae’s stance on these irresponsible debtors.

The period or time frame that one should be blacklisted for is being debated by consumers all over the nation. Some feel that seven years is no where near the allotted time for punishment and others feel it is just too much.

Over the last two to three years, there appeared to be a conscious trend for individuals to stop feeling that this house was no longer their family dwelling from the outside world but now their investment or cash cow.

The outcry has become louder against these greedy home buyers with the general consensus that they should get whatever punishment the Fannie Mae and the courts feel is fair and equitable. Maybe these ones will treat their new houses in the future as a home and not an investment.

A recent press release said that “Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically defaulted on their home loans in jurisdictions that allow for deficiency judgments.”

Many are now considering why the current Administration seems to be sweeping this issue under the political carpet as if this is not a serious problem when in reality it is of huge importance especially since Fannie Mae has taken such a strong stand against these homeowners.

Looking to find the best St Louis mortgage lenders, then visit www.StLouisRefinancingGroup.com to find the best St Louis home mortgage advice on a St Louis mortgage refinancing loan for you and your family. Get your questions answered by calling us at 877-334-0210 or 314-334-0210.

One of the better programs that has been available to those wanting to buy a home with guaranteed lower interest rates and low to no down payments has been the United States Department of Agriculture.

There have been tens-of-thousands of consumers who have placed high hopes of moving into the home of their dreams with a very good, competitive St Louis home mortgage loan. This has been a refreshing notion considering the more stringent lending guidelines in place.

Looking at the sharp contrast in loans done by the USDA, we notice 31,000 loans worth $3 billion in 2006 compared with the phenomenal numbers of 133,000 loans worth about $16.2 billion done in 2009.

What about qualifications for this program? The standards for qualifying for these home loans were rather tight and the default rates were far better than the FHA which was good news according to St Louis mortgage experts.

But with every good aspect there are negative ones as well. For one thing, the USDA never expected to handle huge amounts of St Louis loans and have thus run low on funding.

To rectify this unfortunate situation, members of Congress are in the process of appropriating more funding for this successful program. In fact, the House passed a bill sponsored by Congressman Paul Kanjorski of Pennsylvania.

The Senate also passed a bill out of the Appropriations Committee which was sponsored by Senator Michael Bennet of Colorado.

But there are many who still cannot get a St Louis home loan even though new bills have been passed to provide more funding to the USDA.

So, homeowners who have picked their new home and filled out all needed St Louis finance paperwork by said deadlines are anxiously awaiting news from Capitol Hill as to when more funding will be available. Now they have until September 30th to close on their home loan.

The additional monies would definitely be a welcome catalyst for this sinking economy. These bills should pass but the question still remains when these funds will be available.

Keep in mind, buyers have to close by September 30th. And many of these home loan applicants are depending on these USDA loans. They signed binding contracts by the end of April 30th, and now they are pretty much in limbo.

Realistically, there is sufficient time for the funding to be approved before the new September deadline. But the question remains if there is enough time to close on most if not all of these home loans whose applicants met the June 30th contractual deadline.

Industry professionals are still trying to keep an optimistic attitude that these loans will be made and the closings will take place by September 30th so that the consumer and all professionals involved will be happy.

With the September 30th deadline just around the corner, St Louis refinance professionals feel it certainly behooves those on Capitol Hill to quickly arrange this extension of funding so that time doesn’t run out for lenders to process the huge amount of applications.

If time runs out, the consumer would be left with no new home, no home buyer’s tax credit and possibly lose out on a low interest rate or the potential to get a better one.

Thus, let us see how Washington and the current administration addresses this new appropriation of funding for the USDA and hope that all home loan applicants will truly benefit and get their new home. The economy needs this as well.

Visit this website to learn more about a St Louis home mortgage. Stop by Floyd J. Tapia’s site where you can find out all about St Louis loans and what they can do for you. We invite you to call us at 877-334-0210 or 314-334-0210.

With the numerous reported failures of the federal program known as HAMP, inside senior officials seem to be jumping on the band wagon sharing their new found pessimistic viewpoints on where this program may be headed.

With letters being traded between Neil Barofsky, special inspector general for the Troubled Assets Relief Program (TARP), and one key senator, he has recently said in a report that the U.S. Treasury now expects only 1.5 million to 2 million homeowners to get mortgage relief.

But the sobering news is that nearly 4 million consumers actually need this federal assistance. Yet, most experts are despondent at the reality of this number being attained.

Looking at the whole picture, less than 200,000 which equals five percent of the 4 million have gone from the trial program into a permanent loan modification.

But if matters couldn’t be worse, the inspector general’s report warned that many borrowers are at risk of re-defaulting on their St Louis mortgages even after receiving help under the federal program.

Again the critics are coming out of the wood works suggesting that these homeowners are irresponsible. But the truth of the matter is, many still owe more money than what their home is worth not mentioning that others have second mortgages.

One statistic that we will briefly mention in this article would be the amount of homeowners who were irresponsible and bought homes they knew they couldn’t afford, those who took adjustable rate mortgage (ARM) St Louis loans with interest only payments just to get into a bigger house they didn’t deserve and finally the ones that are guilty of getting the so-called “liars loan” or in other words those who lied on their stated income application.

Getting back to the matter at hand, Barofsky then shows his further skepticism basically saying that these loan modifications may not be the best program to continue offering. The Treasury department had other opinions as to the wide spread criticism.

In a long, drawn out response included in the report, Herbert M. Allison, assistant Treasury secretary for financial stability said the program “should be measured by how many eligible homeowners are able to avoid the pain and stigma of foreclosure by reducing their mortgage payments to affordable levels while either remaining in their homes or transitioning with dignity to more suitable housing. The number of permanent modifications is one element, but not the only element of gauging the success.”

It is rather interesting how politicians and their ever-so-loyal henchmen try to inadvertently, yet aggressively make excuses at why everyone is looking at things the wrong way except for them.

Allison seems to want everyone to understand that the important point is not the failing of HAMP, but that Barofsky is simply not measuring its lack of success in the correct manner.

But the Treasury department along with Allison cannot fully believe this concept since he goes on to say that permanent modifications are really only one way to help struggling homeowners.

The fact that servicers offering other foreclosure prevention initiatives and alternatives such as short sales must be taken into consideration.

Yet, most people who have been following this program from its inception were spoon fed the amazing idea that permanent loan modifications through HAMP was the best and perhaps the only way the country would see this insurmountable amount of foreclosures go away.

It should also be noted that any permanent modifications that do not include meaningful principal reduction will in all likelihood fail.

If you are wanting to discuss some of the best home loan options on a St Louis mortgage or a St Louis refinancing loan, visit our websites or call Floyd, Steve or Doug at 877-334-0210 or 314-334-0210.

Our economy, particularly the housing industry, has been deeply badgered by large amounts of job losses, foreclosures and home values being decimated as if by overnight.

The bitter truths have shown that a meager 4 percent of homeowners on a national basis that faced foreclosure within the last year did receive mortgage assistance.

This has made the Obama administration to look continuously for a solution for the remaining 96 percent of homeowners already in foreclosure. This obviously doesn’t include future foreclosure victims in 2010 and 2011.

Statistics show that nearly 2 million housing units in the United States are in foreclosure or are bank-owned, and more are expected to follow, according to RealtyTrac.

Citigroup experts say the government’s current solutions have been ineffective at keeping people in their homes, and they anticipate lenders could foreclose on another 8 million loans as the economy worsens.

What does this have to do with short sales? Well, according to the National Association of Realtors, approximately 500,000 transactions in 2009 were short sales which represented almost 10 percent of all home sales.

Not surprising is the attitude adjustment from banks who are beginning to go along with short sales in increasing numbers, Bloomberg.com says.

The St. Louis Refinancing Group and the local lending community also reported that short sales almost tripled by 40,000 in the first 2 quarters of 2009 compared to the same time frame in 2008.

The Office of Thrift Supervision and the Office of the Comptroller of the Currency seems to feel that in reality there were 25 foreclosures started or completed for each short sale filed and completed.

“It’s really finally dawning on banks that they’re better off with a short sale,” said Richard Green, director of the Lusk Center for Real Estate at the University of Southern California in Los Angeles. Mr. Green continues: “I think banks were in denial.”

What the average consumer doesn’t realize is that there are definite benefits in doing a short sale. First they remain in control of the sale and ultimately spare themselves the social stigma of going through a foreclosure.

And if your mortgage payments were never 30 days late and the lender didn’t require you to pay back the loan, you would be allowed to purchase a future home after said short sale occurred according to Fannie Mae guidelines either immediately or after a waiting period of no more than 3 years.

The worst case scenario involving a short sale is if you were behind on your mortgage payment by 30 days or more, you and your family may indeed qualify to buy a future Fannie Mae backed mortgage possibly within two years.

But what if you were a victim of foreclosure? Do not despair. Even with restrictions in place, you may qualify to by another home within 5 years and if there’s no restrictions in place, within 7 years.

Finally, for those investors out there where this house is not their primary residence, your wait would be 7 years according to Fannie Mae’s guidelines.

The market is changing mainly brought on by political pressure. Hence, the Obama administration is now advocating short sales as an alternative to imminent foreclosure.

The Treasury Department has taken steps towards finalizing guidelines employing the use of short sales under the Making Homes Affordable program.

The administration has also appealed to participating servicers under the new Home Affordable Foreclosure Alternative (HAFA) program to embrace the short sale as a substitute to foreclosure.

The HAFA program was a vital implementation for current homeowners that did not qualify for loan modifications under the Home Affordable Modification Program also known as HAMP.

Learn more about the best St Louis Mortgage loan. Stop by Floyd J. Tapia’s site where you can find out all about a St Louis Mortgage Refinancing and what a new home loan or refinancing can do for you.