Imagine that between companies, they owned 163,828 homes at the end of the 1st quarter in 2010. Add to that face that they have lost 146 billion dollars in that period.
A little interesting math says that for every home Freddie and Fannie foreclosed upon, they lost approximately $891,000. Now my guess is that the average value of these homes is not $891,000 so the overhang of unpaid mortgages is even higher. So high that the sale of the homes will not even come close to covering the debt.
But don’t worry, it is only government debt that is paying it now. What is there to worry about?
Fannie Mae and Freddie Mac took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March, a virtual city with more houses than Seattle. The mortgage finance companies, created by Congress to help Americans buy homes, have become two of the nation’s largest landlords. via STLToday.com
Oh, and you want another little nugget? Check out this stat about Phoenix.
The two companies together accounted for 17 percent of real estate sales in Arizona during the first four months of the year, almost three times their share of the market during the same period last year, according to an analysis by MDA DataQuick. The signs of their presence — small placards hung beneath the real estate agent’s standard for-sale sign — often are planted in the front yards of several homes on the same street.
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