Housing is on the way back up?
How does this work? There is a house across the street. It's been abandoned and in legal limbo for over 3 years. The owners left it after running away from some criminal activity. The house sat empty and with no care all of that time. Numerous complaints to the county to get the place cleaned up were a waste of time. The basement was flooded about 4 feet deep for an entire summer and mold was visible growing on the inside of the windows. The mold is what finally got the health department out there to look at it. So after a long process it finally goes to public auction. Here's what I don't get. The house was last sold in 2005 for 545,000 to the owner tht abandoed it. Along comes Fannie Mae to the auction in August of 2012 and pays 531,740.00 for it at the auction even though a quick search shows that this is way overvalued for the current market. After hiring work crews to work on it a little bit,it's finally offered on their HomePath website for sale listed at 329,000.00. A full 216,000.00 loss plus the money put in to the guys working on it. Does flipping houses at a 200,000 loss right off the bat get housing going again? Who gets the money? How many of the thousands of houses on Fannie Mae's HomePath website are sold at big losses like this?