Fannie Mae And Freddie Mac To Allow Walkaways By On-Time Borrowers

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

 

tutas towne realty, inc


Are Short Sales becoming a thing of the past? It seems like this is the way the market is moving. Fannie Mae and Freddie Mac own or guarantee $5.2 trillion of mortgages, more than half the outstanding U.S. home loans.


Starting in March Non-delinquent borrowers with illness, job changes or other reasons they need to move will become eligible to apply for a deed-in-lieu transaction that erases the shortfall between a property’s value and the size of its mortgage.


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Team this with the fact that Fannie Mae is now artificially inflating property values through their high Short Sale counters and their Homepath program and you can see that Short Sales are no longer the first option for these two mortgage giants.


It’s clear that the goal is to take over ownership of properties so they can sell them once the values increase. Or the properties can just be sold through Homepath at a higher than market price since an appraisal is not needed with this program.


Short Sales are drying up:

 

  • There are about 7 million underwater properties, worth less than the mortgages on them, down from 11 million in 2011, according to JPMorgan Chase & Co. (JPM) Within two years, the number of upside-down home loans could drop to 4 million, the New York bank said.


So....if you handle Short Sales for a living it is time to start looking for alternative income streams. I know I am.


What say you?

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 01/30/2013 04:08 AM
Topic:
ActiveRain Community
Location:
Florida Orange County
Tags:
deed in lieu
freddie mac
fannie mae
shoirt sales

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Rainmaker
920,697
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Thanks for this information Bryant. As stakeholders in these government entities, we need to pay close attention to the way they are managed. I have always thought that Fannie and Freddie were consistantly used to generate favors and cash for some members of the elected population. Not to mention any names, but I always thought Barney and Chris were very friendly with the management considering how much it cost the tax payers. Just my two cents, but the government needs to stay out of housing.

Jan 29, 2013 10:34 PM #1
Ambassador
1,486,051
Jim Crawford
Crye-Leike REALTORS® - Atlanta, GA
Jim Crawford Atlanta Best Listing Agents & REALTOR

This is great information Bryant!  Thank you for taking the time to share this valuable information!  I also agree with Larry's comments above!

Jan 29, 2013 10:46 PM #2
Rainmaker
1,142,210
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Way too late to get government and banks out of real estate. That train has already left the station. The way we sell real estate is quickly changing.

Jan 29, 2013 10:51 PM #3
Rainmaker
414,612
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

I agree with your assessment.  I've been watching another post on your site short sale superstars about whether the number of short sales has gone down.  It does feel like they are slowing in my area and the short sales that are still  happening are ones that a loan mod or deed in lieu won't fix.  

We've been cleaning up the banks' mess for years and exactly when they have geared up the agent community to do short sales -- they start dwindling and the banks and GSEs start (seemingly) changing course.    Also, now more people are actually getting decent loan mods, thankfully. 

This business is constantly changing and you have to change with it. 

I'm already preparing to move past short sales although I always plan to have them as a niche of my business.

Jan 29, 2013 11:20 PM #4
Rainmaker
111,619
Miriam Dillon
Rosemary Beach Realty - Rosemary Beach, FL
Realtor in Rosemary Beach, SoWal and all of 30A

We are seeing fewer short sales in my market area too.  And, yes, the short sales we have are much more difficult.  Appraisals are consistently coming in way too high!  The appraisers seem to be doing straight square footage appraisals.  Great information, thanks!  

Jan 30, 2013 01:19 AM #5
Ambassador
1,041,795
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

BB, interesting, in my little neck of the woods they are increasing. I wonder what will happen next. Going with the flow is not easy when you don't know where the flow will come from.

Jan 30, 2013 06:32 PM #6
Rainmaker
184,970
Ann Dail
Baton Rouge Area Homes, Louisiana, USA, 225-761-0551 - Baton Rouge, LA
Broker/Realtor,CRS, ePRO, SRS, B.A.Chem

I knew there was a reason I am hating short sales now.  :-)

Jan 31, 2013 05:15 AM #7
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Rainmaker
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Bryant Tutas

Selling Florida one home at a time
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