Mortgage Giants may be going down now

[mundame]

Fannie, Freddie stocks and bonds plummet (http://www.reuters.com/article/newsOne/idUSN1018418020080710)

Thu Jul 10, 2008 10:51am EDT
10:17am EDT
By Al Yoon

NEW YORK (Reuters) - A firestorm of anxiety over the ability of U.S. mortgage giants Fannie Mae and Freddie Mac to get the capital they need to survive sent their debt and stocks plummeting on Thursday.

Stoking concerns, former St. Louis Federal Reserve President William Poole said the two major U.S. mortgage finance companies were "insolvent" and may need a U.S. government bailout, according to Bloomberg News.

The outlook was so dire that Bush administration officials were meeting with regulators to discuss contingency plans should they be unable to raise funds and support the worst housing market since the Great Depression, according to a report in the Wall Street Journal.
************************************************** ***

Developing story: White House issues statement, trying to calm fears

Poor Bernanke was supposed to testify to Congress today that the financial markets were still in turmoil ------- I guess he knew whereof he would have spoken.

This is the same panic that occurred those few days when Bear Stearns went down in March. This is not the size of Bear Stearns, however ---------

Fanny Mae and Freddie Mac hold 50% of all home mortgages in America.




Could be a problem.

[namvet]

its always been a problem. one of the other biggies has already went down. also tons of mortgage co's have already went brankrupt. many were giving out loans in the past to lenders that didn't even have a job !!!!! totally nuts. but homeowners add to their own misery. over extending their debt loads. then getting laid off. divorced etc. so its a 2 way street. no wonder the sub prime is a mess. its a buyers market. and you have your choice of thousands of repo homes.

[mundame]

you have your choice of thousands of repo homes.

True. I know a guy here in real estate, he buys up some country-type foreclosures and pays a friend of mine to clean up and redecorate, and sells them at a profit.

I heard on the financial channel someone say that speculators may buy them up and rent them out --- a sort of new form of slum landlords. Still, it's better that houses be used than stand empty.

[manu1959]

True. I know a guy here in real estate, he buys up some country-type foreclosures and pays a friend of mine to clean up and redecorate, and sells them at a profit.

I heard on the financial channel someone say that speculators may buy them up and rent them out --- a sort of new form of slum landlords. Still, it's better that houses be used than stand empty.

isn't the free market wonderful.....

[namvet]

True. I know a guy here in real estate, he buys up some country-type foreclosures and pays a friend of mine to clean up and redecorate, and sells them at a profit.

I heard on the financial channel someone say that speculators may buy them up and rent them out --- a sort of new form of slum landlords. Still, it's better that houses be used than stand empty.

if you don't have an existing mortage the repo banks will talk to you. if you do, like me, forget it. these banks are getting desparate to get rid of them. they have thousands of repo's and its breaking their backs to hold them. since they have to continue to pay for real estate tax's, county and city. and real estate co's and brokers have the $$$ to buy them.
-- I would never rent. cost for renting now equals or exceeds buying. but there's one born every minute???? here's on of the major repo sites.
foreclosures (foreclosures)

-- a lot of these are still brand new homes.

[mundame]

Pretty scary to me about these big companies going down, possibly, today.

The Wall Street Journal says that if they DO go down, 1) the taxpayer has to bail them out, 2) there will be few mortgage loans available anywhere, as they'll take the system down with them, and 3) what loans there are will be high interest.

My co-worker has been putting off a house refi ----------- he's now calling around frantically to get an appraisal. If he gets so far as a rate number, he'd better get it locked in.

[avatar4321]

Pretty scary to me about these big companies going down, possibly, today.

The Wall Street Journal says that if they DO go down, 1) the taxpayer has to bail them out, 2) there will be few mortgage loans available anywhere, as they'll take the system down with them, and 3) what loans there are will be high interest.

My co-worker has been putting off a house refi ----------- he's now calling around frantically to get an appraisal. If he gets so far as a rate number, he'd better get it locked in.

1)The taxpayer has no obligation to bail anyone out and as long as we continue suggesting that and prevent market forces from taking affect, we will continue to see problems with the industry.

2)Might be something we have to deal with.

3)That would fix the weak dollar.