Full explanation here … this just in today from First Tuesday … it appears the prospective “strategic short-sellers” with 1st-TD loans backed by Frannie aren’t going to get too much sympathy from FICO … even after declaring a “hardship”
Only the prospective “strategic short-sellers” who don’t care about their FICO scores or the fact that they may not be able to get their short-paid lender(s) to report them to the credit repositories as “paid as agreed” after a successful short sale will avail themselves of this new “strategic-defaulter” criteria.
I see a few straggling baby boomers (who got caught up in payng too much in recent years) successfully take advantage of this new plan. After all, their “soon-to-be-legally-accessed-w/o-penalty” retirement accounts “won’t count” towards the “20% of assets” used to “make good” the deficiency in exchange for a “paid as agreed” mark on their credit report(s) :=]
These individuals can just turn around and pay cash for their next property so why should they care?
This new plan will enable them shed debt-overhang at the age of 60 and come out smelling like a rose :=D
