The kindler, gentler government has suddenly turned ugly on the poor. At least the poor who got those Fannie/Freddie-backed predatory loans.
Little has been said of Obama’s cratering of the home-equity market still estimated to be about $6 trillion dollars. Just because you lost, doesn’t mean the government has. So what you are trying to rebuild your finances from being among the long-term unemployed with an upside down mortgage.
This might be the answer as to why Fannie/Freddie have gone gangsta:
You now may face a foreclosure, and debt collectors are in pursuit, freezing bank accounts, garnishing wages and seizing assets.
If the proceeds from your short-sale, abandonment, or however you got from under that mortgage were not enough to cover the amount of the loan, plus penalties, legal bills and fees, you’re in trouble. Because Fannie Mae and Freddie Mac, as well as other mortgage players want their money from years ago.
The banks are getting “deficiency judgments.”Before the housing bubble, banks often refrained from seeking deficiency judgments, which were seen as costly and an invitation for bad publicity. But publicity be damned, as tough times call for tough measures. So as with the legacy of Obama, borrowers will be haunted by the banks for years!