Posted on 02/08/2010 5:53:57 PM PST by GOP_Lady
MCLEAN, Va.—When Charles E. Haldeman Jr. became Freddie Mac's chief executive officer in August, the ailing housing-finance giant had already consumed $51 billion of government money to stay afloat. It's likely to need even more.
Freddie's federal overseers nevertheless have instructed Mr. Haldeman to focus on something that isn't likely to make the bleak balance sheet look any better: carrying out the Obama administration plan to allow defaulted borrowers to hang onto their homes.
(Excerpt) Read more at online.wsj.com ...
Doesn’t really matter if they let the original borrower keep the home or not. They can’t sell them for anywhere close to what is owed. If they take the home back they have to pay taxes and maintenance. Not foreclosing ensures the loss isn’t on their books, only the late payments.
We are a loooong way from the bottom of this real estate crash.
The DemocRATS’ “affordable housing” fiasco sure jumped up and bit us on the @$$. It’s never a good idea to sell something to somebody who has no intention of ever paying for it. A “teachable moment”.
They’re still at it. I heard a commercial for a special finance program only for Native Americans. It said they could borrow up to $300,000 for a sweet deal mortgage, even if they had lousy credit. This country has gone crazy.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
