The amount of foreclosures that most likely will happen this year will be at least 2.6 million. What is worse is that approximately 11 million owners are severely underwater as far as their homes are worth.

These strategic defaulters who could obviously pay their mortgage but decided it was not worth their time or money and who did not complete a workout alternative in good faith will have to face Fannie Mae who plans to limit their access to government-sponsored home loans for seven years.

But that’s not all. Mortgage lenders who feel they have been defrauded by these consumers will seek deficiency judgments in court. This will legally bind the borrower who has quit paying on their home loan to pay any balance that is still owed after their house is sold off.

California plans on limiting the use of court orders handed out to obtain deficiency judgments. If the home loan was for refinancing, the order will be granted. If the loan was for a purchase, no court order.

And what will ultimately happen to these borrowers who refused to pay their home mortgage loan? Will they be blacklisted from all FHA and government sponsored home loans?

Sit back and think about the mortgage atmosphere when and if Fannie Mae rigidly upholds this new policy and said no to every homeowner who needed a FHA loan but could not get it due to refusing to pay their mortgage obligations.

Especially if it can be proved that they engaged in a “strategic default” or the abandonment of their home to foreclosure not because the payments were unaffordable but because the home buyer became upside down on their St Louis loan. In other words, the mortgage loan is larger than the value of the residence.

How long will this borrower be in financial limbo? Well, according to Fannie, they would not buy or guarantee another home loan for these fraudsters for seven years.

The research firm CoreLogic interestingly points out based upon their recent data that homeowners will more often than not continue to pay on their mortgage even if their house value drops if they have the money and income to do so.

On the other hand, consumers will more willingly walk away from their St Louis home mortgage loan when the value of their home drops 25 percent or more under the home loan amount.

If we go back to the month of March, about 31 percent of foreclosures were described as strategic walkaways which was compared to only 22 percent in March of 2009.

There are those who openly support this long overdue decision made by Fannie Mae and those who feel this isn’t fair nor legal to force on those whose homes were affected by this bad economy.

And why should this ineligibility only last seven years? Should we not throw the proverbial book at these irresponsible fools who in essence helped cause the greatest collapse in the housing industry since the Great Depression?

Over the last two to three years, there appeared to be a conscious trend for individuals to stop feeling that this house was no longer their family dwelling from the outside world but now their investment or cash cow.

As a struggling nation trying to get back its financial strength, many experts are calling for the use of common sense and thus get back to the traditional viewpoint that a house is a home to live in and not our own personal A.T.M.

A recent press release said that “Fannie Mae will also take legal action to recoup the outstanding mortgage debt from borrowers who strategically defaulted on their home loans in jurisdictions that allow for deficiency judgments.”

Many are now considering why the current Administration seems to be sweeping this issue under the political carpet as if this is not a serious problem when in reality it is of huge importance especially since Fannie Mae has taken such a strong stand against these homeowners.

Looking to find the best St Louis mortgage lenders, then visit www.StLouisRefinancingGroup.com to find the best St Louis home mortgage advice on a St Louis mortgage refinancing loan for you and your family. Get your questions answered by calling us at 877-334-0210 or 314-334-0210.