Uncle Sam now owns 248,000 homes!
http://money.msn.com/home-loans/uncle-sam-stuck-with-248000-homes-b...
Fannie, Freddie and HUD have snubbed their noses at short sales for too long and now they want to know what to do with all of the homes that they foreclosed on! Maybe they should have listened to us instead of treating us like the problem and treating us like we are all scammers just trying to make a fast buck!
last year Fannie Mae told us that 75% of their defaulted properties are foreclosed. That means that in this case, it could be 82000 short sales and 248000 foreclosures. Doesn't take a genius to figure this one out. Assume the total cost of a foreclosure is $40,000, a conservative number, MULTIPLIED by 248,000, that is almost 10 BILLION DOLLARS that Fannie and Freddie passed on to the tax payers.
How much would the cost of a short sale have been? Well, with concessions, closing costs and commissions, about 10% ( high number) total. So lets assume that the average price is 150,000 multiplied by 10% equaling $15,000. $15,000 multiplied by 248,000, equaling 3.7 BILLION.
A short sale MAY cost Fannie 3.7 Billion compared to a foreclosure at 10 BILLION.
How soon do we start talking in ZILLIONS :)
Thoughts?
Replies to This Discussion
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Permalink Reply by Deidre St. Romain on
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The extreme stupidity boggles the mind...it so doesn't make sense that you know there is more than meets the eye here.
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Permalink Reply by Kathy Toth on
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Jeff, great work out - you should be the director - please!
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Permalink Reply by Beverly Cibulsky on -
Ya know Jeff....
Too bad the average tax payer doesnt know this!!! We as real estate professional deal with this all the time and frankly I am a ticked off tax payer. As a Tax payer, I am very concerned how this will all play out! The sad part, I think every middle class tax payer is gonna have to pay... this is way too deep! More math, really conservative, 3 mos delay for short sale, average taxes on property per month... say $200 x 3 mos... yeh only $600 X maybe... 500,000 instances? (and keep in mind this is very conservative!!!!! (not to mention the crooks in property preservation mentioned in another post) Lets needlessly re-key 500,000 properties at a mere $75.00 a pop! My biggest laugh is "winterizing" Florida properties! Heck we may loose citrus!!! But I doubt very much frozen pipes. These tid bits, may be included in your example as a lump sum, but people have to know what is going on out there! Some people would love to have $75 bucks to spend on groceries yet.. Well at least some lock smith might have fed the family!
This is all so sad, and very, very, scarry!
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Permalink Reply by Joshua Gayman on
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Serrriously.. there are just more and more zeros being added to everything! What a corrupt system it is. I have always had a feeling that some times there is money "being handed off privately in back rooms" so to speak..like you point out here, it just doesn't make sense. Are they really just that stupid? Or is there more to it that we don't know about which involves corruption at the most inside level possible? IDK...
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Permalink Reply by Richard on
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You know, I see parallels of the Wall Street crisis........not so much of the greed, but the reluctance and ignorance of our policitians and both administrations to do something about it. It didn't just happen overnight.
This problem is worst than a bad nightmare. At least the nightmare you do eventually wake up and ponder the what ifs. This problem, we'll eventually wake up...................to night sweats, headaches, fevers and lot more. Two aspirins and call the doctor in the morning won't help it.
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@richard - no doubt man i hear ya
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Permalink Reply by Becky Martin on
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Amen - there is no lack of short sale business and the hardship letters continue to reflect the economy, loss of income, unemployment, etc......a normal business model would cut their losses and move on! But no, this industry is creating a larger problem by continuing to ignore the facts - short sales are a solution to the problem!
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Permalink Reply by Valerie Pressley on
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We all agree that this is stupidity and makes no sense. Obviously, there is something here that we can't see! Somebody is making money, so who is it? Certainly not us!
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I would take it one step further and ask the question, who stands to gain the most from this? That's where the greed becomes a factor. As I mentioned in my earlier post, there are similarities with the Wall Street crisis.
Here again, lay the problem at the feet of the taxpayers and at their expense, then walk away from it. I'm sure there are others, just myself who are sick and tired of paying for others bad decisions and carelessness.
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Permalink Reply by Jeff Payne on
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Richard, who stands to gain? I would say that if we did not real research, there are attorneys who are specializing in foreclosures who really stand to gain. Google David J Stern and see what he did.
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Hi Jeff,
I'm not saying the short sale specialist are the big gainers in this situation. What Iam saying is, I believe this problem is deeper than we know and some entities and busnesses are going to make huge profits from this, at the expense of others. The short sale specialist profits are peanuts compared to the money that will eventually be made. Certainly, there appear to be lunacy on the surface, but I think there is more.
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