Are You On The 7-Year Blacklist?

It looks like "strategic" defaulting on loans is starting to plague Fannie Mae.  Here is an excerpt from a press release yesterday:

Fannie Mae (FNM/NYSE) announced today policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Defaulting borrowers who walk-away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure.

 That is some pretty strong medicine from Fannie Mae.  It looks like short sales and deeds in lieu of foreclosure will soon be more agreeable alternatives to Fannie Mae borrowers instead of just abandoning their property to the bank.