[quote=Diego Mamani] . . . Take out Freddie, Fannie, and the FHA, and prices would really drop to reality! Painful? Yes, but I’d rather live in a painful reality than in a fantasy world that I know is unsustainable. Gov’t intervention, and now the courts meddling, are simply prolonging the fantasy, meaning, the pain will be even worse when the chickens come home to roost.[/quote]
Diego Mamani,
“Fannie, Freddie and the FHA” were in place LONG BEFORE independent mortgage brokers began originating an abundance on NINA mortgages, I/O “exploding mortgages,” limited-doc programs and using every avenue to defraud the lender (fabricating tax returns for the client/fabricating W-2’s/bank statements/investment statements and/or fabricating business licenses or asking the client to obtain a business license and then washing it and backdating it). This all went on in broad daylight right here in SD County for several years! “Fannie, Freddie and the FHA” are probably not going anywhere.
The “courts” are only “meddling” in “judicial foreclosure states.” CA is not one of these. Yes, our local market still has some pending and recent foreclosures in the pipe. I DO believe that major lenders prevalent in this area are NOW finally deciding to avail themselves of their right to non-judicial foreclosure and are doing so, even if the borrower was in the middle of a loan mod, “wishful short-sale” or had applied for a deed-in-lieu. From my experience, I am seeing that major lenders appear to now be ready or in the process of chucking it all, taking their (limited) “guarantee” and foreclosing, immediately dumping these properties on “Fannie or Freddie,” simultaneous to any applications the delinquent borrower may have had still pending. HAVE FAITH! The train is back on its tracks. We will see a LOT of foreclosures in 2011. Hopefully, this will clear the bulk of the current local “shadow inventory” little by little :=]
The party for FB’s is nearing (and past) its curfew and “sell-by date.”
