Why does Fannie/Freddie still allow people who short sale to rebuy in 2 years?

[annerk]

Originally Posted by runrgirl

It is not the homeowners fault that their property depreciated. If they bought the house that was worth 300,000 and had a mortgage for say 250,000 ( they have 50,000 equity) when they took it and the property depreciated to 200,000 because of the real estate crash and they short sale it for 180,000 the bank and the property owner are losing money. They did not just get a mortgage forgiven, they lost equity and likely down payment money. I don't get this punishment bull crap. Why should they have to wait 5 years. Should the bank and appraisers be punished too for "lying" to the property owner about its original value. I don't even think they should have to wait 2 years if they pay on time and always have and their credit score meets criteria. P

EVERYONE has lost equity. Boo freaking hoo. My house is now worth 40% less than it was in 2005. That's the breaks. I suppose that you think everyone who lost money in the stock market should get reimbursed by their brokers, too, right?

[HEATHER72]

I should send a link of this thread to our neighbor who is doing a short sale. She's telling everyone how she is going to buy a bigger house with a pool in a year.

[aneftp]

Originally Posted by HEATHER72

I should send a link of this thread to our neighbor who is doing a short sale. She's telling everyone how she is going to buy a bigger house with a pool in a year.

One word that best explains the cavalier attitude that still exists:

Entitlement

People feel like they should always be given something.

It's sad, but once all this fiasco resolves (financial crisis/housing crisis/job losses), within 5 years we will be back to old bad habits (overspending, not saving).

Remember Enron? Well that was about corporate greed and fraud. People lay low for a few years and are back doing the same thing.

Like I said before, the worst thing the govt. did was pass the mortgage forgiveness act (2007) because the govt. in a way is already giving a huge subsidy by waiving thousands, in some cases hundreds of thousands of dollars of the potential tax liability in a short sale.

But some short sellers still want their cake and eat it too. You just can't do that. Some short sellers still considered themselves, "the victim". Sad but true...entitlements. That's the world we live in.