Government-sponsored mortgage purchaser Fannie Mae is trying to encourage distressed homeowners to find alternatives to foreclosure by banning those who walk away from getting new loans for seven years.

Troubled borrowers who do not try in good faith to work out a deal, but have the capacity to pay, are targeted by the policy announced Wednesday.

…Fannie Mae said that in locations where the law allows, it also plans to take legal action to recoup outstanding mortgage debt from borrowers who strategically default. The company plans to instruct its servicers to monitor delinquent loans facing foreclosure and recommend cases to pursue for such judgments.

Fannie, a huge part of the problem, has been capsizing boats and is ordering folks to not jump out of the water. The government will surely step up its campaign to keep in place its social engineering strategy which is anchored in its “American Dream” scam.

Remember that in 2009 Obama threw away the $400 billion bailout cap for Fannie and Freddie and pledged whatever (unlimited) finances were needed to keep the two sinking ships afloat. Meanwhile, both companies are delisting from the NYSE and will trade over the counter because they could not meet the minimum trading requirements.

I’ll close with some unkind words form a Wall Street Journal piece last week on Fannie and Freddie:

First things first. Fannie and Freddie aren’t real companies. The total equity in the two companies is a negative $146.9 billion, according to Bose George, an equity analyst covering the mortgage and housing sectors for Keefe, Bruyette & Woods. In short, these are government-owned zombie entities that would have been shut down by regulators long ago, if the regulators didn’t own them.

Freddie Mac also said it would immediately allow him to sell his home to the company, waiving a 60-day offer period that is required for other executives. It did not, however, specify which of his homes would be covered; Kari has residences in Ohio, Oregon and Washington State, according to the filing.

Three residences? Apparently, his pay and the purchase of his home does not qualify as “excessive.” This comes at a time when Freddie’s troubled mortgages are increasing in number, not decreasing. A recent quarterly report shows that delinquincies on mortgages backed by Fannie and Freddie rose 21% in the 2nd quarter of 2009, while foreclosures were still rising. At the same time, Bank of America’s “retiring” CEO – who was surely fired by the U.S. government – will take away a compensation package worth about $125 million.