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Thread: Housing is on the way back up?

  1. #1
    Senior Member Illinois Bob's Avatar
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    Default 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?

  2. #2
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    Fannie backed the loan, it did not sell at auction, property defaults to fannie so they fixed it and dumped it for what they could. Illinois moratorium on foreclosures and being a judicial default state slows the process way down.

  3. #3
    Senior Member Franco's Avatar
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    Quote Originally Posted by Illinois Bob View Post
    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?


    It is called QEIII...
    Buying mortgage-backed securities could take these off banks’ books, possibly boosting lending and spending. Consumers may find it easier to refinance and buy new homes.
    >>>>>>>>>>>>>

    Simply put, the Fed Reserve(that secretive central bank that doesn't want anyone looking at their books because though they use future tax payer money, feel that the tax payer is too stupid to understand what it is that they do) buys mortgage backed securities with freshly printed money or money borrowed from China and we all live happily ever after
    Last edited by Franco; 12-07-2012 at 03:21 PM.
    The Libertarian Party believes that all persons are entitled to keep the fruits of their labor. A call for the repeal of the income tax, abolishment of the Internal Revenue Service and all federal programs and services not required under the U.S. Constitution. We support the passage of a "Balanced Budget Amendment" to the U.S. Constitution, provided that the budget is balanced exclusively by cutting expenditures, and not by raising taxes. LP.org

  4. #4
    Senior Member Franco's Avatar
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    George Carlin explains it best with, "Its a big club and you ain't in it"
    http://www.youtube.com/watch?v=i5dBZDSSky0


    Why did the big banks, the large corporations, and foreign banks and foreign central banks get bailed out in 2008 and the middle class lost their jobs and their homes?
    The Libertarian Party believes that all persons are entitled to keep the fruits of their labor. A call for the repeal of the income tax, abolishment of the Internal Revenue Service and all federal programs and services not required under the U.S. Constitution. We support the passage of a "Balanced Budget Amendment" to the U.S. Constitution, provided that the budget is balanced exclusively by cutting expenditures, and not by raising taxes. LP.org

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