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You wonder why it is hard to resell homes today? Just take a look at Fannie Mae and Freddie Mac. Fannie Mae has 5 billion worth of unsold property on it’s books. That is not properties in foreclosure, that is 5 billion dollars worth of property they have already taken over and have to pay  upkeep, taxes,  and maintenance of the property.

Yet at the end of the process they are typically selling for 74 percent of the unpaid mortgage. So any downpayment on the home is lost and 26 percent of the mortgage amount has also disappeared. This is a crushing blow to others trying to compete with these foreclosures.

And to make it worse, selling them still takes nearly half a year. This helps explain why the real estate market is in such a tough position.

Freddie Mac-owned properties spend an average of 152 days on the market and typically sell for 92 percent of the listed price, usually about 30 percent less than the peak prices of 2006, said Ingrid Beckles, vice president of servicing and asset management. The company re-evaluates prices every two weeks, she said.

“We are very careful to ensure our properties are not driving market values down and they show well,” Beckles said. “Our challenge is like everyone else’s from a volume perspective: maximize recovery and minimize credit losses, and balance that with making sure we’re not driving down property values and not destabilizing neighborhoods.”  via Bloomberg.com: U.S.

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Related posts:

1. Renting A Fannie Mae Held Property? No Worry About Evictions
2. Freddie, Fannie Give Christmas Present - No Foreclosures Till New Year
3. Fannie Mae and Freddie Mac Face Market Turmoil
4. How Will Fannie and Freddie Deal With The Second Mortgages?
5. Fed Bailout of Freddie and Fannie For Foreign Investors or American Citizens?