An interesting dialogue from Yahoo Finance regarding the Fannie and Freddie situation:
See VIDEO HERE.
Weitz: Clearly, the 'recovery' has been generated by government intervention in the financing market via FHA, Freddie, and Fannie backing approximately 70-90% of all mortgages currently. Additionally, the home buyer tax buyer credit has clearly contributed to the increased demand for housing in the past 9 months. Moving forward, the tax credit and the buying of mortgage backed securities are set to expire within the next 2 months. It will be very interesting to see how the real estate market responds when the 'training wheels come off'. My best guess: the tax credit simply stole demand from future potential sales. I expect sales to drop rather sharply in the coming months, and for the inventory of homes to once again begin to rise as sellers who have been holding out for a recovery give up hope and seek short sales and/ or allow their homes to be foreclosed upon....time will tell.
From more information, contact a Seattle Foreclosure attorney.
Weitz Law Firm