In testament to the Fed’s continuing string of disastrous business decisions, recent filings paint a stark picture of how the foreclosure crisis is landing squarely and with furious anger upon the heads of Fannie Mae and Freddie Mac. Is it a conspiracy or just plain stupidity?
The foreclosure crisis has hit lots of lenders very hard but maybe none more so than the beloved government puppets Fan and Fred. How about some numbers? In the last year alone, the Two Stooges have almost doubled their inventory of seized property. Fannie owns 64,000 and Freddie 29,000. Without the moratorium of the previous two quarters, those numbers would be even higher.
This is great news for bad news bears borrowers because the two companies are frantic to give out loan modifications and short-term loans. But who is getting stuck with the bill? Taxpayers, of course. Managing foreclosed properties is a losing proposition no matter which way you slice. It’s a money pit. A bottomless hole. The government has charged F & F with stabilizing the housing market, regardless of cost, it seems. So, how deep are those taxpayer pockets and when is the talk of tax raises going to start?
With reports surfacing that Fannie has been selling homes in some areas for as little as $5,000, it begs the question, might be a good time to get serious about becoming an income property baron? Can you say fire sale? Now don’t just jump in buying properties nilly-willy because they are cheap. Get educated first. The Complete Solution For Real Estate Investors™ is a great place to start. This innovative program from Empowered Investor Network is as close as a phone call to our expert investment counselors at 714-820-4200.
Flickr / Randy Son of Robert
