Fannie Mae & Freddie Mac - Trying to Increase Neighborhood Values?

Yesterday, I drove past a very nice home in my own neighborhood, in Old Town Scottsdale. I know this home was a short sale previously because I had 2 buyers who both liked the home. It was well kept, up to date- the downside for my clients- it had 3 OFFERS! So I assumed this short sale would be accepted. However, to my surprise, a friend of mine's sign popped up yesterday! He only sells foreclosures. At that point, I knew the lender had foreclosed instead of accepting the short sale offers.

So I shot him an email, funny enough, we went to grade school together. His entire business is foreclosures. He works for the big guys, Freddie Mac, Fannie Mae & smaller private banks. He is a superstar of foreclosure sales, I mean to work until 1am to keep these institutional clients happy is a huge task!

He told me that this particular home is owned by a smaller private lender. I commented on how I knew the home had 3 offers when it was a short sale. This started a pretty in depth conversation.

It appears that the smaller lenders are willing to "let" these homes go to foreclosure and then sell them cheaply to make more money from the mortgage insurance company. The more the smaller lender loses- the more they make in payment from the mortgage insurance company. They don't care what price the home sells- they just want it sold in 15-30 days! This doesn't surprise me at all!

However, this did surprise me. Fannie Mae & Freddie Mac- government run agencies are trying to preserve neighborhood values by replacing carpet and appliances and selling the homes for a higher price. Thus helping the neighborhood values not become depleted. This actually does fit with many of the neighborhood stabilization programs the government has talked about, but I hadn't seen in action. I was so pleased to hear that this was actually happening.

While I show many of these foreclosed homes to clients- they are not all fixed up- so from my viewpoint- their mission didn't seem as clear. However, my Realtor friend that stays up until 1am- working for these agencies- sees their mission everyday! He told me it is their goal to sell these foreclosed home for good values. So Freddie Mac & Fannie Mae replace carpet, appliances and restore these homes to sell them for a higher value. This means the majority of foreclosure sales should be keeping with current neighborhood values- rather than as typically thought- driving down the neighborhood values. This is all good news for real estate!

Charlotte Allred is the Designated Broker for Secure Real Estate in Chandler Arizona. Secure Real Estate works to help Sellers who are struggling with their home as well as Buyers to find their new home. We pride ourselves on the utmost professionalism and bringing significant knowledge and thus value to our clients. Please see this article at: securerealestatephoenix.com/real-estate-education/fannie-mae-freddie-mac-trying-to-increase-neighborhood-values securerealestatephoenix.com/real-estate-education/fannie-mae-freddie-mac-trying-to-increase-neighborhood-values/ Check out our videos & articles at: securerealestatephoenix.com securerealestatephoenix.com