Walking away from mortgage is a big step

Published: April 13, 2008 at 5:17 PM
Related Company

WASHINGTON, April 13 (UPI) -- Fannie Mae and Freddie Mac are warning struggling U.S. homeowners to think twice about walking away from their mortgages.

The two lenders, the largest two sources of mortgages in the nation, say they could be blackballed from the mortgage market for several years unless they can show viable extenuating circumstances.

The San Francisco Chronicle reported Sunday that the warnings were made amid a rising number of sales pitches to troubled consumers promising their credit could be tidied up and they could nail another mortgage in short order even if they walk away from their current obligations.

But Robin Stout Migala, consumer outreach manager for Freddie Mac, told the Chronicle consumers would likely see their credit wrecked and could also face tax troubles down the road.

© 2008 United Press International, Inc. All Rights Reserved.
Order reprints



Additional News Stories
Warhol painting sells for $43.7M (18 min)
Co-worker allegedly attacked over perfume (30 min)
Djokovic wins at Paribas Masters (31 min)
District halts cash-for-grades fundraiser (41 min)
Franchisees sue Burger King over $1 burger (51 min)
Woman to fight fine for feeding ducks
Wickmayer discusses doping suspension
fark
Tennessee man found asleep in a ditch with a loaded rifle and a bottle of moonshine
If there are aliens on other worlds, did Jesus die for their sins, too? After all, every Gelgamek...
Murder suspect tells jury he has the cure for global warming, knows how to win in Afghanistan, and...
...and when they covered the Jews' cars in sticky-notes I said nothing, because I was not a Jew
Photoshop this barrier balancer
You can make your very own Tamiflu at home. I'm sure this will end well