Upcoming Foreclosures

Why do bank owned foreclosures resell for 3 times or more than what the foreclosure was assumed?

With SO many foreclosures on the market and hundreds more every day, WHY are the REO's so expensive and hard to negotiate with? Quite often that county's property appraiser's office will show what the note was bought for and the resale price is quite hefty! I tried to negotiate with Fanny Mae TWICE on 2 different properties and they stubbornly held to their selling price of 3 times over the foreclosed amount! This was BEFORE the Fannie Mae/Freddie Mac collapse! No pity for them here! To: monkeypb...I thought Freddie Mac AND Fannie Mae DID get bailed out?

Public Comments

1. they have a rich uncle.
2. They are a business, and as such want and need to make a profit. They wont get goverment "aid" like the auto industry... So they have to actually work for it.
3. Fannie Mae is not a corporation or private company, it is what's called a GSE (government sponsored enterprise). Its executives and board and probably a lot of the managers are appointed by the feds. Any losses they incur will be bailed out by your taxes, even before the various bailouts and porkulus bills over the last half-year or so. Never forget that it was in fact government that caused this mess to begin with - the Carter-signed and Clinton-expanded Community Redevelopment Act encouraged Freddie Mac and Fannie Mae and the various banks to make mortgage loans to the disadvantaged - i.e. people who would not actually pay the loans back. This in turn increased the demand for homes which fueled the rise in prices. As long as prices kept going up even people without jobs could keep borrowing against their rising equity and make their payments. When the bubble burst, as it inevitably would, prices crashed and all those people discovered that - shock and horror, what a surprise - they couldn't actually afford to own a home. Sadly, millions of honest and responsible people got dragged down with this as well. You might (though I promise nothing) have better luck dealing on a foreclosure held by a bank - corporations are accountable to their shareholders for losses and may be willing to take a lower price to get a bad mortgage off the books. Instead right now you're basically trying to buy a house from the feds. Don't expect them to understand concepts like supply and demand. TL,DR: Try to find foreclosures not held by a GSE and you might have better luck dealing.