Fannie Mae Foreclosures

Like every other third party mortgage investor on the planet, Fannie Mae has had a rough time lately. When Wall Street finally stopped buying sub-prime loans Fannie Mae found themselves holding millions of un-sellable mortgages…essentially holding the bag.

Was it greed that created this situation?

That is too easy of an answer. The truth is the system was set up for people who are responsible for the increase in the value of a company, to keep up with their investors desires for ever growing profits as compared to their competition.

In other words, they have to keep up with the “Jones’” or their companies will lose share value, their investors (you and me) will lose their investment in the company and the executives will lose their jobs fir not satisfying the company mandate of growth or shareholder value.

Essentially, Fannie Mae business decisions were made driven by a purely profit motive.

Fannie Mae Foreclosures: The Perfect Storm

The CEO of Fannie Mae had to keep up with the CEO’s of Freddie Mac and all the other smaller mortgage investors or the world would have stopped working in their view. It was either “grow profits at all costs” or they believed they would have died long ago and the situation would have become worse than “Not Working” …it would have been broken.

Was the environment created political?

Yes and no.

Many believe that if the political climate for these sub-prime loans had not been created, the past market conditions would not have happened. Without the politics, millions of homeowners would still be renters not homeowners. This is somewhat simplistic, the problem is really more of a combination of corollary events that when assembled in a particular order created a “Perfect Storm” of Greed and Fear among Lenders, Homeowners and Mortgage Professionals.

This “Perfect Storm” is why Fannie Mae has been forced to foreclose on so many houses in the past two years. Currently Fannie Mae has more foreclosures on the negative side of their books than ever before….the wake of the storm so to speak.

The same perfect storm has caused Fannie Mae stocks to sink like a stone, with millions of foreclosures and people losing their homes in record numbers compounded by job cuts throughout the financial and housing industries, this rippling effect will be felt for years to come by Fannie Mae.

These are not the signs of greed or political mistakes. These are the outcroppings of a fatal combination of Greed and Fear.

This same combination of raw human emotions have been seen throughout history and are not relegated to the financial industry, big business, politics or the times we live in.

Foreclosure Properties: An Excellent Investment Opportunity

Remember when it was cool to be a Dotcommer? Before that bust there was oil, tulips and several others. Real Estate in the early 90’s saw the same type of collapse in Britain. As a result, the British Government put in safety measurements to stave off another housing implosion but the measures couldn’t stand up against the Fear and Greed that often motivates human behavior.  

We have all felt the effects of the housing downturn and the money we have all lost in the stock market, our 401k’s, and the reduced equity in our homes.

The best way to counter these negative financial effects is to buy the foreclosures offered by Fannie Mae.

These assets have depressed pricing and offer a great profit opportunity for homebuyers.

For the right buyer, foreclosures are an excellent opportunity to buy a house at a lower than market-value price.

My advice? Make an offer, buy a foreclosure home and enjoy the ride of the next decade of appreciation.

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Guest Leslie says:
2016-Jul-29 00:53
 
 
Buyer
Look for anything can get 2 bedroom 1 bath to 5 bedroom 2 bathroom in nothing Ut
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Guest Steve harkness says:
2011-Jun-23 21:07
 
 
You left out one fact
That being that banks have a CRA (Consumer Reinvestment Act) rating they need to maintain. In 2002 consumer advocacy groups such as ACORN and others decided that home ownership was a right and not a privilege. They were able to force the banks to lower their credit standards to encourage a section of the populace that had never had the ability to buy a home before due to credit scores to buy a home. Unfortunately, this population segment had also not been taught proper money management skills either. They were sold homes they couldn't afford to make the payments on. Many took loans that offered a rate that was equal to someone that who had good credit would obtain on a 30 year fixed rate loan, but because of their poor credit their loan only stayed fixed for 24 or 36 months and then converted into ARM's. The idea was they would clean up their credit during the fixed period of their loan then refinance to a prime 30 year fixed before their loan converted into an ARM. Most followed the plan laid out for them by their loan officer faithfully, but when it came time to refinance to that Prime rate....the mortgage market had imploded and there was no money available to make them a loan, even though they had done their part. When the payment began to index on their ARMS and go up they could no longer afford to make the mortgage payments and fell behind, once again screwing up their credit. I do not blame them for being bitter one bit.,,especially when they see people like Jamie Dimon, CEO of JP Morgan Chase to CNBG "Giving debt relief to people who really need it is what foreclosure is. They (homeowners) are probably better off going somewhere else, because they get relieved of 100% of their debt through foreclosure. Now you know where to direct your anger as your being relieved of all your debt and thrown out of your home.
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Guest Jean says:
2011-Apr-12 23:46
 
 
condo
2bd 2 1/2 ba ranch
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Guest Jean says:
2011-Apr-12 23:45
 
 
Ms
looking for a foreclosure 2bd 2 1/2 ba ranch
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Guest Jean says:
2011-Apr-12 23:51
 
 
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two bed room (master) With two an half bath, Ranch Style, fireplace, fench back yard, lots of light, large master closet, five peace bath, washer/dryer in unit and appl also
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