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