Why Fannie Mae and Freddie Mac Are Filing Up the Effort to Ease Mortgage Debt

About 1 in 5 American homeowners live in mortgages underwater. That means that they owe more on the house than it’s worth. Many mortgages are backed by Fannie Mae and Freddie Mac, who are resistant to forgiveness of mortgage debt.

In Arizona, the state has offered to use federal aid to pay half the cost of mortgage forgiveness, but guess who has said no. Freddie Mac and Fannie Mae. “Principal reduction is needed to shrink the foreclosed houses on the market”, that’s crazy and that does not leave many options for homeowners underwater. Unfortunately, most homeowners in this situation face foreclosure will result in default judgment. The only way out of that is to declare bankruptcy so that the default judgment doesn’t follow you around. Isn’t it time that Fannie Mae and Freddie Mac get in line with the congressional and state efforts to forgive some mortgage debt.

If you are in trouble with a Fannie Mae or Freddie Mac Mortgage, and think bankruptcy may be the route for you and your family, give us a call today. We may be able to help you take the financial burden off your shoulders with your mortgage debt.

Leave a Reply