Foreclose or not to Foreclose. Who do we Believe?

Fannie Mae in August issued a warning to the banks and companies who service their loans that if they don’t’ pick up the pace on the foreclosure process, they will be sued. Freddie Mac hasn’t officially issued a similar statement but you can bet it’s forthcoming.
Here’s the confusing part of it all, the U.S. Government is running Fannie Mae and Freddie Mac!
Out of one side of our leaders mouths the U.S. government says we must slow the process and modify as many real estate loans in default as possible, and out of the other side of their mouths, their company Fannie Mae is saying speed it up or else!
The longer it takes to foreclose on a Fannie Mae owned loan, the more money Fannie loses on each loan. A non income earning asset combined with a asset declining in value (in many parts of the country) is not a money maker.
When Fannie and Freddie loses money, who foots the bill? We the taxpayers do and Fannie and Freddie’s bailouts, unlike the banks bailouts, are not going to be paid back.
It’s pretty obvious that our government, who ousted Fannie Mae’s CEO when the U.S. forked over the largest bailout in our history, does not exchange emails with their appointed Fannie Mae CEO because they are giving contradicting statements to the public.
So just remember next time Fannie Mae or Freddie Mac issue a statement regarding quickening the pace of the foreclosure process, it’s really our government in disguise.

Best KW

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