corporations that provides home loans is now backed by the federal government, is taking step to prevent homeowners from walking away from their mortgages.
In Duval County there are more than 5,700 homes with mortgages in default.
In many cases, owners simply cannot pay what they owe. However, others make a decision to walk away and let the bank take the home because it is not longer considered a good investment.
Come October, Fannie Mae is going to punish those who can afford their mortgages but walk, by banning them from getting new loans through their corporation for seven years.
"These people are looking at homes that are so far underwater they realize that in their lifetime they will never realize any equity out of their investments," said Chip Parker, a foreclosure defense and bankruptcy attorney.
Parker has a different take than one might expect when it comes to homeowners who strategically default on their mortgages.
"It should be insulting to the middle class that Fannie Mae, who has been given $145 billion dollars from our government to keep it afloat, would turn around and threaten middle class America," said Parker.
Currently, homeowners who have mortgages through Fannie Mae and who strategically default, cannot take out a loan again with Fannie Mae for five years. In October, it will be extended to seven.
"So it is attention getting. If they go from the five years to seven years, it does put some teeth into it. So it will make some homeowners think twice before walking away," said Carol Hill, president of the Northeast Florida Association of Realtors.
A spokesperson for Fannie Mae tells First Coast News that while this policy is meant to discourage homeowners from walking away from their financial responsibilities, it won't affect homeowners who can prove "financial hardships" that keep them from paying bills, like an illness.
Hill urges homeowners to get financial counseling before making any big mortgage decisions.
"We certainly encourage financial responsibility. It is in everyone's best interest to strive towards a workable solution for all parties," said Hill.
A spokesperson for Fannie Mae would not specify how many of the properties it helps finance have been abandoned by homeowners who walked away. The company said the numbers are not shared publicly.
