There will be new legal guidelines that will give Fannie Mae legal recourse against home loan buyers who refused to make their mortgage payments when financially they were able to.

The situation has imploded to the point that there may be more than 2.4 million foreclosures that will occur. And this doesn’t include the millions of homeowners who are upside down on their homes.

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.

In addition, many of the lenders who have been victims to this reckless behavior are seeking what legal experts call deficiency judgments. This is a court order requiring a borrower who has defaulted on their mortgage to pay any unpaid portion of the home loan after a foreclosed or seized house is sold.

In the state of California, a bank or mortgage lender can only obtain a court ordered deficiency judgment if the home loan was used to refinance a home but not if it was used to fund a purchase.

And as regards the ability for future borrowers who have purposely defaulted on their current mortgage to attain another government-sponsored home loan?

Well, let’s just say for the moment that Fannie Mae made it clear in no uncertain terms that a new home loan such as a FHA loan would be extremely difficult for these “black-listed” ones to obtain.

Of course this would be the end result once it was proved that the homeowner refused to pay their home loan all because they were upside down on the value and that it wasn’t due to being unemployed.

How long will this borrower be in financial limbo? Well, according to Fannie, they would not buy or guarantee another home loan for these fraudsters for seven years.

Further data from the research firm CoreLogic shows that consumers who are slightly underwater or owe a little more than their homes are worth will most likely continue to pay their mortgages if they have the resources.

However, if the home value falls more than 25 percent under the current home loan amount, more and more consumers would then simply walk away or commit a strategic default on their St Louis home mortgage loan. And these numbers seem to be nationwide.

March 2010 saw about 31 percent of foreclosures as strategic walkaways by the consumers themselves which was compared to only 22 percent in March 2009.

However, many are now questioning why it took so long for Fannie Mae to make these debtors finally owe up to their financial responsibilities?

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.

The problem seems to have gotten totally out of hand when the fundamental idea of buying a home to live in now became simply, an investment.

As a struggling nation trying to get back its financial strength, many experts are calling for the use of common sense and thus get back to the traditional viewpoint that a house is a home to live in and not our own personal A.T.M.

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.”

Now that Fannie Mae has taken steps to make these ones pay for their lack of responsibility and curtail future offenders, experts are saying maybe the Administration will stop making less of this problem and also take a strong position which may help prevent another mortgage fiasco from ever happening again.

Want to find out more about a St Louis finance loan, then visit Floyd J. Tapia’s site on how to choose the best St Louis mortgage lenders for all of your St Louis lending needs. Or give us a call at 877-334-0210 or 314-334-0210.