Skip to comments.Bust In Nation's Housing Sector Could Hit Freddie, Fannie Hard
Posted on 10/14/2005 7:08:08 AM PDT by ex-Texan
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Weren't most of the Fannie problems Clinton's doing one way or another?
Sounds like cheap HUD homes to come!
It wouldn't hit me or the 20K or so other people in NOVA waiting for the housing prices to drop very hard at all. Nor would it adversely effect the hundreds of private mortgage lenders that Fannie Mae's fat behind has crowded out of the market.
Fannie Mae has been a wierd ponzi scheme for years. Let it crash!
Yes, but the President has had five years to get it fixed and hasn't brought the problems to light, similar to a wide varieties of Federill agencies.
It's his problem now.
Let the private investors take over. We don't need Fannie anyway, plenty of portfolio lenders and subprime lenders out there would gladly take A-paper business at rates comparable to what Fannie can offer.
I know people living in NOVA. One has about 5 acres and a nice three bedroom home and paid about $ 80,000 for the whole shebang last year.
Fannie holds about 2 trillion dollars of debt. Fannie is probably bankrupt but you have to hope that out of the 2 trillion, at least 1.5 trillion is salvageable.
Freddie is probably solvent and is much smaller.
Can everyone's memory recall now----S & L Crisis? Yeh, I know, my age is showing.....
Um, you mean $800,000, don't you? I've been doing a lot of shopping for 5 acres in Northern Virginia with a three-bedroom house on the property, preferably a fixer-upper, and I never see anything less than $600K east of the Blue Ridge. If someone told you he bought even a modest townhouse for $80K, he's joking with you.
In should have said Western Virginia. I saw a photo of the house.
I list and sell over 100 properties a year.
I haven't seen an offer with Government (FHA/VA) financing in almost 4 years.
When conventional lenders are offering 100% financing with "stated income" (not verified), why put yourself in a position to be scrutinized by FHA underwriters?
When the last new bank building is built and the last new church gets built, the economy is going down the tank. Let me know when this happens.
where are you located? i live in upstate ny and see them semi-frequently, usually the price is right anyway but if they end up cash strapped, and with thousands of bad loans prices should get even better.
i don't really care if they verify my income, i actually don't see an advantage to buying something i can't afford.
Here we have a huge immigrant population.
If you earn income as a landscaper or painter, or house cleaner or babysitter...say $25K a year, you can state that you make for example, $85K per year (as long as your FICA credit score is over 600).
The prohibitedly high monthly payment is offset by having family or friends moving in with you.
Recently sold a 3 bedroom, 1550 sq; ft. condo that has 6 working adults and two children living in it. The $2,100 monthly payment gets paid on time...the bank could care less.
And don't kid yourself...the local government looks the other way. The county police are instructed in no uncertain terms to never request citizen status or cooperate with the immigration authorities in any manner.
That's considerably more believable. The Blue Ridge Mountains are a big dividing line. East of them, the prices accelerate rapidly.
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