Officials at Fannie Mae and Freddie Mac -- which fund the bulk of new mortgages nationwide -- disputed White's characterization of how quickly after foreclosure a walkaway
borrower can obtain a new loan.
We don't release the number of walkaways," says Kevin Waetke, communications manager/assistant vice president for Wells Fargo Home Mortgage, Des Moines, Iowa, one of the nation's largest servicers of home mortgages.
Most experts are calling the difference between a walkaway and what many consider a typical foreclosure a matter of approach--walkaways simply choose not to try to save themselves from the foreclosure process.
Our walkaway (left against medical advice plus left without treatment) rate decreased from 2.
Notwithstanding lengthy work-ups and extended stays of many plychiatric patients, our overall average LOS passes downward through 200 minutes while Solucient reports similar hospitals with LOS between 266 and 326 minutes and walkaway rates of 3.
PRISON VIOLENCE AND ESCAPES--2005 TABLE 3: ESCAPES AND WALKAWAYS
ESCAPES Number of Number of Number Returned SYSTEM Attempts Successes to Custody ALABAMA 38 1 1 ALASKA No response ARIZONA 2 0 N/A ARKANSAS 1 0 N/A CALIFORNIA No response COLORADO 12 8 8 CONNECTICUT 2 2 2 DELAWARE No response FLORIDA 8 3 3 GEORGIA 2 0 N/A HAWAII No response IDAHO 10 8 7 ILLINOIS No response INDIANA 6 0 N/A IOWA Unknown 2 2 KANSAS 8 8 7 KENTUCKY No response LOUISIANA No response MAINE 2, est.
After the generalization training program, generalization training was also conducted across walkaways for all three tasks.
The percentage of interobserver agreement across the three tasks and walkaways ranged from 80% to 100%; all but three conditions resulted in 100% agreement levels.
Todd cautioned that companies providing walkaway
clauses should consider restricting them to the handful of senior officers most likely to be needed during the transition period, but not beyond.
Loans originated across the country in the pivotal market-turn year of 2006 have produced seven times more walkaways than loans originated in 2004.
Individuals who have mortgages on multiple houses also have a higher likelihood of strategic default, but researchers believe that many of these walkaways are from investment properties or second homes.
On March 31, Fannie Mae sent out new guidelines to lenders aimed at walkaways and other foreclosure situations.
Still another company says walkaways can expect "up to one year living payment-free" as the lender goes about filing for foreclosure.
This fall, to corner those able, but unwilling borrowers, Fannie Mae plans to increase its demands that lenders pursue deficiency judgments against walkaway borrowers.
FHA recently got serious about deficiency judgments after an article appeared in the New York Times describing the apparent ease with which a walkaway borrower had abandoned a Colorado condo.