Government Considering a Fannie Freddie Takeover

RE:Government Considering a Fannie Freddie Takeover

Douglas M. Thomson Sr. — Fri, 11 Jul 2008 11:00:00 GMT

This makes me want to invest in the failing lenders and wait for the profits to role in. The FEDS will never allow them to fail and in 2-3 years from now the investment will no doubt tripple in value. Housing is not the same as stock. However housing turns around at a slower rate with big profits. For example a home valued @ $250,000.00 with an average 4% gain in value over 3 years would would increase the home value to around $281,216.00. $31,216.00 is pretty good. When home values trun around and they will. Purchasing stock in these same companies will be considerably higher and will have stabalized with in three years from now. If it takes longer its ok you are still earing and not losing on this investment. Consider buying some of these low income homes and rent to section 8 or other fixed rent programs. They will make your payment on time as agreed and your home value will continue to grow. As for appraisal of property. It is only as good as the paper it is written on. History will show that over short periods of time homes continues to increase on average 4% per year over the life of the 30 year loan and even more in most cases. Stock on the other hand will never keep up and is allways risky in my book. Unless you are on top of it and have alot of professional advise to support you.

RE:Government Considering a Fannie Freddie Takeover

Alan S — Fri, 11 Jul 2008 11:00:00 GMT

Appending my earlier letter, in light of what is happening with Freddie & Fannie, I want to note that they are responsible for making loans on all of the fraudulent and poorly done appraisals submitted to them for all these loans that have gone south, and they also have learned nothing. Fannie just came into the AZ market soliciting appraisers to do their REO work, no business for me, a local market expert, but I do know it went to AMC's and fee split shops, so you can surely rely on appraisals generated by appraisers being paid $150-$175 (1/2 the market standard) to continue to supply the top-notch work that got us where we are today....Good Luck!... as we accelerate to the bottom!

RE:Government Considering a Fannie Freddie Takeover

Alan S — Fri, 11 Jul 2008 11:00:00 GMT

Double appending my last two messages: As I just said to my wife after reading the headlines about Freddie & Fannie going under: Being a legitimate, expert appraiser in this country is like being a fireman with a hose at the ready, but no one will call you to douse the flames.