Fannie Mae acquiring TWICE as many foreclosures than they are selling

More "good" news…..

The Chicago Tribune has a great article, sharing some interesting insights into how Fannie Mae and Freddie Mac look at their foreclosed home inventory.

“As home prices decline, unsold properties are a problem for creditors like Fannie Mae because taxes, insurance and repairs drain their cash. Fannie Mae acquired twice as many homes through foreclosure as it sold in the first quarter, regulatory filings show, and late payments on its home loans—a harbinger of foreclosures—almost doubled in the past year.”

Doing the math, it's only a matter of time before Fannie Mae can no longer keep up with the glut of foreclosures they are taking one. They can't fund taxes, insurance and other costs on all these homes sitting in their inventory!

Fannie Mae’s goal in selling its properties is to get the highest possible price, even if it means hanging on to them longer, said Gabrielle Harrison, a vice president at the company.

“We want to treat that home as if it was your own, or as if you were living next door to it,” Harrison said. “You wouldn’t want that home to bring down your property value.”

My guess is their holding on to them longer because they can't get the unrealistic prices their asking! Denial is a river in Egypt people! Um, yeah sure they want to get the highest price! But what about reality? A seller is not going to keep their home at some inflated price when their in trouble — they want to dump it and fast. This sound good, and I'm sure some PR person at Fannie Mae thought it up….yes, let's not freak out the market…Well NEWS FLASH! The market is freaked out. Fannie Mae, if i may be so bold as to include my thoughts: buyers ultimately determine the property price NOT home owners.