Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
On Friday, April 16, 2010, the organization posted an educational article titled “Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not let the bank know that he already has a buyer ready to pay 95,000 for the property. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
On Friday, April 16, 2010, the organization posted an educational article titled “Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not let the bank know that he already has a buyer ready to pay 95,000 for the property. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - While not yet a law or an official policy, problems loom on the horizon thanks to a new take on short sales. The latest opinion released from Freddie Mac on short sales presents legal and practical issues for short sale investors.
Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” The article stated, in short, that short sales could be fraudulent if the lender does not have information about a pre-arranged flip of the property after the short sale to another buyer. This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The article described scenarios and red flags for short sale payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not disclose that he already has an outstanding offer for $95,000 from a second end-buyer. When both transactions close and the facilitator pockets his profit, Freddie Mac considers him to have committed fraud since Freddie Mac has now taken a “larger than necessary” loss on the sale.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
On Friday, April 16, 2010, the organization posted an educational article titled “Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not let the bank know that he already has a buyer ready to pay 95,000 for the property. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Fannie Mae, Freddie Mac Foreclosures: Costing Taxpayers Billions
Swamping the nation’s largest mortgage buyer today are the Fannie Mae foreclosures. Fannie Mae reported an $ 11.5 billion loss in the first quarter of 2010. Fannie Mae stock has been in freefall. Fannie Mae’s little brother, Freddie Mac, lost more than $ 6.7 billion. Fannie Mae asked the U.S. Treasury for an infusion of $ 8.4 billion on Monday. Together, Fannie and Freddie say they need about $ 20 billion to stay afloat.
Fannie Mae and Freddie Mac are the only game in town
Elected officials from both sides of the congressional aisle are eager to get point by threatening to stop giving money to Fannie and Freddie. The problem is that Fannie and Freddie are often the only loan company in town, since the market for mortgage securities froze up in 2008. Because Fannie Mae foreclosures are steadily on the rise, no one in Congress has the guts to do anything at this time that could further weaken the housing market.
Fannie and Freddie: it’s same old politics
Many politicians are still avoiding action on Fannie Mae and Freddie Mac, despite the fact the Senate has passed an amendment Wednesday placing stricter rules on writing loans. The Senate failed to pass a provision on Fannie Mae and Freddie Mac Tuesday night, as reported by Politico. Elected officials from both the Republicans and Democrats can’t agree about language dealing with loans and who should be assigned the responsibility to oversee regulations. Democrats are in favor of a newly created consumer protection agency to regulate the loans. On the other hand, Republicans are calling towards the big government card, claiming that the consumer protection agency would have too much power.
Fannie and Freddie go deep
Like many financial institutions during the housing bubble, Fannie Mae and Freddie Mac behaved just like any other bank. The so-selfish two collected $ 3.9 trillion from investors who purchased bundles of mortgages they assembled. Fannie Mae stock soared to some extent. Fannie Mae and Freddie Mac are publicly traded companies, but investors lost confidence once they got in too deep. Fannie and Freddie threatened to fall apart, bringing down the nation’s housing market with them. To avert catastrophe, the federal government was forced to take over Fannie and Freddie in 2008.
Fannie Mae stock report
To date, the U.S. Treasury has thrown more than $ 145 billion into the Fannie/Freddie rabbit hole. Meanwhile, Fannie Mae reported a quarterly loss of $ 11.53 billion, or $ 2.29 per diluted share of Fannie Mae stock, according to Medill Chicago. This is good news, considering those losses were $ 23.2 billion and $ 4.09 a share the year before. A loss of $ 1.75 per share had been estimated by analysts. Monday’s report marked the 11th consecutive quarterly loss.
On Tuesday, Fannie Mae’s shares traded at about $ 1.05. Two years ago, shares prices sat at about $ 26.30. And shares fluctuated between $ 65 and $ 80 for much of the last decade. On Tuesday, the stock closed down 0.94 percent at $ 1.05.
Fannie and Freddie’s problem crisis
Because they own or guarantee more than 50 percent of mortgages in the U.S., Fannie and Freddie are losing money. The New York Times reports that details about losses at Freddie Mac paint a scary picture of the current housing market. Freddie Mac foreclosures rose from 29,145 properties at the end of March 2009 to almost 54,000 units in 2010. Freddie’s nonperforming assets almost doubled, rising to $ 115 billion from $ 62 billion. When they sell, Freddie Mac foreclosures lose around 39 percent on a normal basis.
Freddie Mac delinquencies
According to the New York Times, Freddie Mac is also plagued by delinquencies. Mortgage payments more than 90 days late in Freddie’s single-family conventional loan portfolio are 4.13 percent, up from 2.41 percent for the period a year earlier. Delinquencies in Freddie’s Alt-A book, one step up from subprime loans, totaled 12.84 percent. Delinquencies on mortgages of interest-only were 18.5 percent. Delinquencies on rate loans (option-adjustable) totaled 19.8 percent.
Fannie and Freddie: indefinite, infinite losses
Fannie Mae was created during The Great Depression to make sure that sufficient funds were available to mortgage lenders, then rechartered by Congress in 1968 as a publicly traded company. In 1970, Freddie was created for the same reason. Today, both Fannie and Freddie are caught between a rock and a hard place. Fannie and Freddie began losing billions when the housing market tanked. But the mortgage meltdown also made the nation’s housing market totally dependent on them. By buying loans from banks and other lenders, Fannie and Freddie exist to support the mortgage market. At the same time, they must work to minimize credit losses so the billions that taxpayers have thrown at them don’t vaporize.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
On Friday, April 16, 2010, the organization posted an educational article titled “Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not let the bank know that he already has a buyer ready to pay 95,000 for the property. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
On Friday, April 16, 2010, the organization posted an educational article titled “Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not let the bank know that he already has a buyer ready to pay 95,000 for the property. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - The newest problem in real estate is not yet a law or an official policy, but it is definitely going to create issues in the market. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
On Friday, April 16, 2010, the organization posted an educational article titled “Emerging Fraud Trends: Short Payoff Fraud.” The article described a new trend in short sale fraud that happens when a short sale buyer flips a newly acquired property to another buyer and “pockets the difference.” This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The Freddie Mac poster went on to describe scenarios and red flags for short payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not let the bank know that he already has a buyer ready to pay 95,000 for the property. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Everyone involved in a short payoff is encouraged by Freddie Mac to report potential short payoff fraud the second they become aware of a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - While not yet a law or an official policy, problems loom on the horizon thanks to a new take on short sales. The latest opinion released from Freddie Mac on short sales presents legal and practical issues for short sale investors.
Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” The article stated, in short, that short sales could be fraudulent if the lender does not have information about a pre-arranged flip of the property after the short sale to another buyer. This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The article described scenarios and red flags for short sale payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not disclose that he already has an outstanding offer for $95,000 from a second end-buyer. When both transactions close and the facilitator pockets his profit, Freddie Mac considers him to have committed fraud since Freddie Mac has now taken a “larger than necessary” loss on the sale.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
Freddie Mac’s New Take On Short Sales
Short Sale Fraud - Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Fraud - While not yet a law or an official policy, problems loom on the horizon thanks to a new take on short sales. The latest opinion released from Freddie Mac on short sales presents legal and practical issues for short sale investors.
Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” The article stated, in short, that short sales could be fraudulent if the lender does not have information about a pre-arranged flip of the property after the short sale to another buyer. This is a serious yellow flag for short sale investors who make their living negotiating good short sale deals with banks, then selling their new properties to other buyers for a profit.
The article described scenarios and red flags for short sale payoff fraud. The scenario was set up around a short sale negotiator or facilitator that engineered a short sale of an 80,000 dollar home with outstanding debt of 100,000 for 70,000 dollars. The facilitator does not disclose that he already has an outstanding offer for $95,000 from a second end-buyer. When both transactions close and the facilitator pockets his profit, Freddie Mac considers him to have committed fraud since Freddie Mac has now taken a “larger than necessary” loss on the sale.
The posting encourages buyers, sellers and lenders to look out for short sale fraud red flags. Freddie Mac considers entities buying property, borrowers who are suddenly in default and borrowers who have not reneged on all of their loans to be red flags for short payoff fraud. The article also tells readers to keep an eye out for resale options in their purchase agreement.
Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.