Fannie unsold $5Billion poses peril- Bloomberg

[Mike Kennedy]

http://www.bloomberg.com/apps/news?pid=20601109&sid=aMz0dl3IdwjU&refer=news


July 23 (Bloomberg) -- Fannie Mae, the largest U.S. mortgage finance company, couldn't find a buyer who would pay $6,900 for the three-bedroom house at 1916 Prospect St. in Flint, Michigan. So broker Raymond Megie, who is handling the foreclosure sale, advised cutting the price to $5,000.
Megie still couldn't sell it.

 

[Lawrence R.]

Yikes!

Together, Fannie Mae and Freddie Mac, the two biggest U.S. mortgage finance companies, owned a record $6.9 billion of foreclosed homes on March 31, compared with $8.56 billion held by all 8,500 U.S. commercial banks and savings and loans.

Wow, 2 companies have almost the same liability as the other 8500 in their field...

Man that is huge!!

 

[Randolph Kinney]

Many lenders are in the same position of having losers. Some lenders are refusing to foreclose, especially on condos where they would have to pay all the fees and taxes. Lots of accounting games are being played - Enron accounting.

 

[Steve Metz]

The lenders have a huge phantom inventory of properties. It is about 13 billion and nto the 8.5 billion reported.

 

[Julio E. Sune Jr. (FL)]

"Part of the difficulty for all owners of foreclosed property, and not just Fannie Mae, is a shortage of qualified agents in the field who can sell the homes efficiently, said Jesse Ramirez, a broker associate at Re/Max Partners Real Estate in Corona, California.

``They are all recent college grads without experience,'' Ramirez said. ``They have 300 files each and they're overwhelmed. They don't understand how the typical transaction goes. These people didn't have jobs two years ago, not doing this.''
=============

A FEW YEARS BACK.......The above reminds me of the policy of a bank/lender which read like this:

"The lowest fee appraiser will always be engaged.....If he is not available the next lowest fee appraiser in the list will be engaged"

TODAY......The aforementioned bank/lender no longer exists!!!!!

Our time to start picking properties for pennies on the dollar!!!!!!!

 

[Tony in Ohio]

They have some good Realtors here in N.E. Ohio. There are some newbies too, but overall I think most of fannies brokers are pretty experienced. The $1,000 properties here are because thats about all investors will pay for them in those markets. Oh and owner occupants don't really count because the few that can qualify for a mortgage now do not have the cash or knowledge on how to swing the $10-20,000 it will take to make them habitable.

 

[Doug Meyer]

Together, Fannie Mae and Freddie Mac, the two biggest U.S. mortgage finance companies, owned a record $6.9 billion of foreclosed homes on March 31, compared with $8.56 billion held by all 8,500 U.S. commercial banks and savings and loans.

Wow, 2 companies have almost the same liability as the other 8500 in their field...

Man that is huge!!

A billion here a billion there....whats the big deal? :Eyecrazy: Wonder how much fees and other revenue they generated before these loans went sour?

 

[redfish]

Fannie has a valiant philosophy when it comes to preserving neighborhood values and not dumping properties, but what happens when all the other lenders holding property in the area are dumping. I as a tax payer want them to move that inventory. I don't care what happens to the freaking neighborhoods. They should have thought about that before they made liar loans 13% of their current holdings. Pump and dump, no sorry, just dump. Lighten the load the ship is sinking.

 

[Crunch Hardtack]

"Fannie Mae also owned or guaranteed $344.6 billion of Alt-A mortgages, which are granted without full documentation of a borrower's income. Those loans represent about 13 percent of the company's holdings."

AMEX is taking a hit due to people defaulting on their credit card payments.

GM and Ford are estimated to have a 46% chance of going under within 5 years (I think it will be much sooner).

We are by no means out of the woods. If Fannie and Freddie get bailed out, and I'm almost certain they will, we still have many other economic problems to deal with.