I’m going to make a prediction. And here it is: In the next few weeks a news clip will come out that foreclosure filings are down.
This is the part they won’t tell you about foreclosures: As of August 18, 2011, Fannie Mae had 137,000 single-family homes in foreclosure; Freddie Mac, 60,599 and the FHA 54,645. Somehow these homes need to be resold. Or we can’t have a housing recovery. Do you agree?
Here is something else you might not know: Recently, the government extended “the forebearance” period for delinquent borrowers with FHA loans from four months to, err…, a year! Can I ask you a question: If I’m a deadbeat … let me re-word that … If I was unemployed for several months, and I heard about this forebearance program, after obtaining a new job, why would I pay my mortgage? Why wouldn’t I just take advantage of the new real estate mortgage program… and buy a car?
Okay, I know I’m losing you. But hear me out: In Shakespeare’s Julias Ceasar, Cassius asks Brutas, “Tell me, good Brutas, can you see your face?” His response: “No Cassius: for the eyes see not itself. But by refelction…” Hmm… interesting words Mr. Shakespeare. Back to 2011: How does Congress see themselves in the mirror? More importantly: How do you see Fannie and Freddie ? What refelction do you see as a Boston real estate homeowner? Buyers? Where do you see the Boston foreclosure market going?
File Under: Smell the Roses. Or should I say: A Rose by any other name….