Is Fannie Mae and Freddie Mac really helping homeowners stay in their homes?
Well not according to the investigative reporting at the Detroit Free Press. They recently did a study and obtained documents via Freedom of Information requests and the results are disturbing for Ann Arbor Area home owners.
In December Fannie Mae announced via a top executive that they were doing everything possible to help homeowners stay in their homes. However, the documents 2300 of them proved otherwise. While the banks were trying to work out loan motifications via the HAMP (Home Affordable Modification Program) Fannie and Freddie were telling them to “Proceed with sale”.
Who It Hurts
- The obvious is the homeowner who is in the middle of trying to negotiate with the bank for a loan modification.
- It hurts the tax payers (us) as Fannie Mae knows we the home owners will bail them out. Right now they have an unlimited check book to get more money from the government (or us as the taxpayers.)
- It may clean up the books but it hurts neighborhoods and property values for all of us.
- Since Fannie Mae and Freddie Mac were taken over by the government we have cost us over $1.4 billion.
Alan White a law professor at Valparaiso University who reviewed the documents obtained from the FREEP said, ” they are sabotaging the nations foreclosure crisis and helping drive down property values.”
Read the entire article on the FREEP for more details.