Fannie Mae is actually responding to distressed homeowners needs. It only took them 6 years but better late than never right. And this one could be a game changer for the industry if they follow through.
Basically they decided to relax the waiting period between a foreclosure and being able to take out a new loan. After realizing that a huge percentage of the likely home-buying population probably has a foreclosure, bankruptcy, short sale, or deed-in-lieu of foreclosure on their credit history they decided to wake up and do what’s right.
Now I’m not saying we should be giving out loans the same way we were back in the mid-2000s. We need the rules that have been put in place and a banking system with less layers but this certainly looks like a move in the right direction.
They’ve lowered the time limit from 7 years down to 4 years and in some cases down to 3 years. With multiple strikes against you the longest you’ll wait is 5 years.
I’d like to see how the real estate community reacts to this news. This should pick up the pace of the market significantly. What do you think? How soon will we see improvements?