Fannie faces glut of unsold homes

Fannie's shareholders should get wiped out. If you want to profit from Fannie's ultimate demise you can buy puts on their stock. That's what I've done.

Lucid Realty wrote:

Fannie's shareholders should get wiped out. If you want to profit from Fannie's ultimate demise you can buy puts on their stock. That's what I've done.

To what extent did the increase in cohabitation precipitate this crisis?

It will only get worse. ARM type mortages will peak in 2010 and it takes several years for the fall out from that to clear. Also, by then millions of homeowners will owe more than the home is worth thereby choosing to just walk away from them. I'm glad the whole housing mkt. is crashing. Prices need to come down to normal levels. Not the insane prices we now see as a result of the feeding frenzy that went on in the housing boom from all sides. I'm like the vulture sitting on the sidelines waiting for the wounded animal to keel over. That wounded animal is the housing mkt. In 2 years I will get my $600K home for pennies on the dollar! We're in a recession already soon to be in a depression. Don't believe all the smiling faces on t.v. telling you everything is ok. It's not. Things will get much worse from here. Businesses closing left and right, consumers broke, gov't. broke, banks failing, auto companies with huge losses, housing mkt. collapse, job losses every month, and they still say we might be in a recession. That things will turn around soon. Don't believe all the hype put out by the 'system'

by holding the unusually high prices, expect unusually high inventories. The bubble is over. Dump the comps, let us got on with life.

Folks, now is a great time to buy real estate. If you don't buy now, then a few years from now you will be kicking yourself for missing this great buying opportunity.

Real estate goes up. It always goes up in the long term. So don't try to pick a bottom, just buy now and invest for the long term.

Just have Fannie Mae sell to someone without a job. That's what the previous brokers did. Note brokers is aptly named as they broke Fannie Mae.

No, Freddie and Fannie doesnt own it now, THE FRIGGING TAXPAYERS DO!!!! We pay for this crap!

I have lost 20%, and I live in a nice area. This will pass. I have been through a few of these "problems" in my past and it will take a new route for a while, until "we", the one's that elect, make out choice again. At least Obama can get the 3 billion Muslim's to maybe like us. We went to a bad war and didn't leave when we won.

Buy Now wrote:

Real estate goes up. It always goes up in the long term. So don't try to pick a bottom, just buy now and invest for the long term.

Yes, it goes up in the long term and, no, it's not possible to pick the bottom. However, people have got to stop thinking of real estate as an investment. It's not - unless you are a landlord. It's simply a place to live. If you look at it as an investment it pales in comparison to the alternatives:
http://blog.lucidrealty.com/2008/04/25/the-tr...

Right now is a great time to pay a realtor commission. Don't wait for homes to get cheaper, that will just reduce the commission!

They aren't making any more land!
Suzanne researched it!
Prices always go up!
You can always refinance if the payments get too high!
There are multiple bids on all of the houses Fannie owns right now! I suggest bidding 10% over asking price or you'll never own a home in your life!
Don't throw away money on rent!

Ron wrote:

It will only get worse. ARM type mortages will peak in 2010 and it takes several years for the fall out from that to clear. Also, by then millions of homeowners will owe more than the home is worth thereby choosing to just walk away from them. I'm glad the whole housing mkt. is crashing. Prices need to come down to normal levels. Not the insane prices we now see as a result of the feeding frenzy that went on in the housing boom from all sides. I'm like the vulture sitting on the sidelines waiting for the wounded animal to keel over. That wounded animal is the housing mkt. In 2 years I will get my $600K home for pennies on the dollar! We're in a recession already soon to be in a depression. Don't believe all the smiling faces on t.v. telling you everything is ok. It's not. Things will get much worse from here. Businesses closing left and right, consumers broke, gov't. broke, banks failing, auto companies with huge losses, housing mkt. collapse, job losses every month, and they still say we might be in a recession. That things will turn around soon. Don't believe all the hype put out by the 'system'

As much as I hate it I must agree with your predictions. There will be a LOT of people - who now think they're safe - who will border on destitute. People who were relying on house equity windfalls for their retirement years....

I'm an active Chicago agent and get incensed each time I see the commercials telling people to buy now. Besides spending MY money on these ads that none of the agents have input into I do not agree with the content. They should stop the advertsing and lower our agent costs - we're hurting monetarily too regardless of the misleading advertising. Let individuals decide through unbiased data and news articles if they should buy now, sell now or WAIT.

wasn't it Herbert Hoover who said "prosperity is just around the corner"??

we've got us an endless supply of Hoovers these days.

all of 'em probably JUST as accurate, as well.

Bill Kane wrote:

at least Obama can get the 3 billion Muslim's to maybe like us. We went to a bad war and didn't leave when we won.

I'm sure all of the destroyed families and Guantanamo
alumni will forget all about that stuff and embrace us.

NOT.

we've tens of thousands more people who HATE us and
pray daily for our total destruction than we did on Sept 10th, 2001.. thanks, Bushie, heckuva job.

The example of the house at 1916 Prospect St. in Flint, Mich not selling for $5,000 has been beaten like a dead horse. This is a crack house. It is rotten to the core. Other blogs have pointed out that the land is worth about $6k. The cost to demolish this house is about $3k. Value at best is $3k if you want to hold a vacant lot.

these are all con games run by the biggies