VIRGINIA HOMEOWNERS BEWARE...THINK TWICE BEFORE WALKING AWAY. Unfortunately there are a number of borrowers finding themselves underwater and may be thinking of doing just that.. If you are one of them, give it some very serious thought before you make the decision to walk away. The penalty may very well not be worth it.
There is a possibility that Fannie Mae will come after homeowners that walk away. You might well find yourself on the losing side of a lawsuit. Beyond that is the distinct possibility that Fannie Mae will refuse to back mortgages for these homeowners for at least seven years, especially if these borrowers have not been diligent about looking for other alternatives with the help of their lender.
Walking away, even from a property that is underwater, may not be the smart move in the long run even if it looks tempting right now. This choice may have dire consequences. If you, as a REALTOR®, are working with someone thinging of walking away, please be sure to share this with them.
Whether this may hold true for other states as well, I do not know. However, it may be a good idea to watch for news about this.