July 13, 2008

Fannie and Freddie: How The Mighty Have Fallen

It seems that this mortgage crisis is nowhere near ending.  It seems that each bump in the road and proposed solution only  leads to another problem. 

Oh how the mighty have fallen.  We’re about to see the next two industry giants (Freddie and Fannie) fall like Miss USA, or at least come really close to it.  I can honestly say I am totally unsure how this will all play out in the next few weeks, but I’ll be glued to the news feed watching.  Will the dust settle somehow?  Will things continue to implode?  Will the media feed on this like frantic sharks in a pool of blood?  Okay at least I can guarantee the last one!

And it seems that the mighty mortgage companies and banks aren’t the only one falling these days, home prices continue to drop.  Jon Lansner reports that California continues to top the list of dropped home values.  From June ‘07 to June ‘08 the statewide number sits around 27 percent. 

Included in the big drops are these big price reductions. Judging from the numbers, these are the kinds of homes and sales at the root cause of this mortgage problem.

26701 QUAIL Crk , LH
1 bed / 1 bath / 680 Sq Ft
Previously Listed: $325,000
Currently Listed:  $235,000
Last Sold:  $329,000 (8.8.06)

28542 Munera, MV
3 beds / 3 baths / 2,301 Sq Ft
Previously Listed:  $619,000
Currently Listed:   $549,000
Last Sold:  $735,000 (5.14.04)

20975 Sequoia Ln, MV 
3 beds / 3 baths / 2,000 Sq Ft
Previously Listed:  $599,900
Currently Listed:  $560,000
Last Sold:  $545,000 (2006)