Fannie, Freddie and Pre Foreclosures

What changes will be made at Fannie and Freddie, the 2 biggest mortgage companies in the country, and will they affect Pre-Foreclosure?

I doubt the pre foreclosure short sale process will be changed anytime soon. There is too much more to do to keep the giants running now and the goal is to get them to be running profitably first. I doubt they are looking at how to recapture a profit in the repossessed properties for quite while.

I also don't believe it has a chance in heaven of being solved in two months before the current presidency or Congress changes. So...what's next?

In the paper today it was discussed the 3 possible ways to save/restructure Fannie/Freddie. As I read the options, it will be a battle.

• One way to "save" them (and that's an oxymoron with this particular path) is wait until they "right" themselves (remember the only way to right them at this point was with yours and my taxes dollars gushing in to back them - billions of dollars if you remember) and return them to the way they were (when we had to give tax dollars to save them) before now - conservatorship (let the government run them- which is exactly who is running them when they were run into the ground) and add safeguards to prevent another crisis - huh!
  

Yes, I'm sure they would like that way. These Congress people long defended Freddie and Fannie in their current state because they did provide more affordable housing. Affordable housing for the lower income people who, due to Congress voting to give people loans when they have:

• no down payment,
• no way of saving for one,
• have a low credit score and
• no talents, skills or money to ensure repairs where made to the house,

able to buy a house anyway.

Isn't that law one of the main contributors to the foreclosure crises to begin with?

I also heard on radio talk show this week that 16 of 25 supports of Fannie and Freddie to keep the status quo were democrats getting BIG payouts (err campaign contributions) from these organizations. ..over the last 20 years.

That's like "thank you for your support, here's $500,000 for your campaign." Yes, I'd hate for it to change if I was making that kind of money for just voting YES.

• A second option was to made by Sr. officials at the Treasury Department to shrink the companies and turn them into private utilities. This would make their profits and activities tightly regulated and their large investment portfolios reduced.
  

Seems to me though I remember utilities having plenty of scandals of their own and losing money. Maybe they just have less scandals. And aren't they still regulated by the government? Isn't the government overseeing Fannie and Freddie the problem?

• The third option - and I'm saving my personal favorite for last - is to privatize it. Let the government taxes bail it out (it already has) and let it right itself. Break it into small private companies and let them sell stock. Be pubic. Make a profit. And if or when they get into trouble the next time, the Federal Government has NO business to bail them out. They sink or swim.

Sometimes it seems we have to remind the government leaders we are not a socialist country. We are CAPITALISTS. Say it again, and repeat after me: we are capitalists. We make choices to invest our money. Sometimes we make a lot more money. Sometimes we break even. Sometimes we lose our shirts. But it is our choice and we don't expect the government to bail us out. We invest money we can afford to lose. And if we lose, we learn something to do better the next time. That's capitalism.

Obvioulsy, I vote for #3. Right now while Freddie and Fannie are in conservatorship , Freddie and Fannie are being run by the exact same people who got it in the position it is in right now. How scary is that?

Pre Foreclosure Changes w/Freddie and Fannie?

This week the government should be taking over Freddie Mac and Fannie Mae the already government backed mortgage lenders.

Now there are more questions than actual information about how Freddie and Fannie will change or if they will. Apparently, the leaders overstated the company's capital resources and financial stability.

Meaning they are no longer stable and have no capital reserves to bail themselves out if/when things go south or expenses go up and income goes down...which is what is happening now.

About 5 years ago, Freddie's Executive Officers manipuated the books by about $6 Billion and apparently that is happening again. And the current top executives are being pushed out too.

It's believed that
1. the cost of borrowing money from Freddie or Fannie will decrease
2. They will continue to buy and sell home loans
3. home prices will not stop falling
4. Foreclosures will continue to rise

While foreclosures continuing is a bad things for the homeowners, the economy and the tax payers (us) who are bailing out Freddie Mac and Fannie Mae again, it is the time to buy real estate and do close short sales.

With any hope Freddie and Fannie's new leader will understand discount and selling houses fast. Do you think we have a chance?

I'll b keeping my eye on this and working directly with banks. Anything new to help us, I'll let you know!

Deb McMillan
Short Sale Queen

PreForeclosures Will Be Even harder To Close if....

Obama makes it to President. He Wants us to give him our lives and our decisions. Obama supported the Washington, D.C. gun ban - until he flip-flopped his position after the Supreme Court ruled against it.

• He has pledged to raise taxes.
• He wants the government to control our health care.
• He is beholden to, and shares the same views, of the radical Left and environmental extremists that continually assault our property rights and who oppose developing a small portion of the Arctic National Wildlife Refuge (ANWR), oppose building nuclear power plants, and oppose developing domestic coal and oil shale deposits.
• He supported a moratorium on offshore drilling - until he changed his position (once over 70% of Americans supported lifting it).

A vote for Obama is a vote for government-mandated redistribution of wealth. (from http://www.governmentpirates.com/)

Is this scary?

My big concern is since we have given up prayer in schools, the 10 commandments in the court houses, pray at sports games, we are ripe for the picking to kick out Christanity and become a Muslum country. Does that scare anybody? Then the Islamic extremist will be able to move right in and come out of hiding and be like Detroit - hear the minerets 5 times a day - praising Allah.

You may have hated Bush, you may think McCain is no good, but Obama seems to be exactly what and why our forefathers left England and came to the New World years ago.

• To gain property rights,
• Not have "the religon of the day stuffed down our throats",
• Leave the tyranny of the ruler behind and
• Have the ability to govern ourselves.

We have these things now. Although we give them up a little bit with each law that is passed. With Obama, they may go quickly. Our Congress isn't strong enough to vote against him on all the laws he may pass. And those guys are pretty liberal themselves so they may just vote with him.

It goes back to the old saying "Power Corrupts" "Absolute Power Corrupts Absolutely" and

"All that is necessary for the triumph of evil is that good men do nothing."

I know I said I wasn't going to talk politics and I only did on how it will affect real estate. Well, sorta.

To learn more about buying in depressed econmy and before we have to fight to keep our property go to www.shortsalequeen.com and keep your eye on the membership site coming soon!

OK, I don't like to be political but as a real estate investor this seems to be a no brainer. Who are you going to vote for"

John McCain says “The need to protect private property rights - once so obvious to Madison and Adams - is now becoming lost in a tangle of intrusive government takings. Nowhere has this been truer than in (that) disastrous decision," Kelo v. New London, Connecticut Supreme Court ruling allowing cities to use its powers of eminent domain to seize homes and businesses to benefit developers and generate more tax revenue.

McCain strenuously opposed the disastrous Kelo v. New London and has vowed to support a constitutional amendment to protect private property rights and recognizes that “property is the fruit of one’s labor. Property rights protection means that the individual reaps the rewards from the sweat of his brow, not the government or those who control the government.” He even has a petition on his Web site in support of property rights. (infor from www.governmentpirates.com)

Yeah! for McCain. He's got my vote.

We are losing many other rights as a new candidate takes office. If this guy says he'll vote FOR property rights, it's not a sure thing he will. He is just like the others, liable to change his mind as the wind changes. However, Saying it now gives him a much better chance of saying yes later!

For ways to buy property at deep disounts go back to www.shortsalequeen.com Sign up to for the up coming membership site for short sales. Keep watching!

Deb the Short Sale Queen!
Long Live the Queen! and become a member of the Queen's Round Table