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Jan. 15 (Bloomberg) — Freddie Mac continues to foreclose on homeowners and make plans to evict them, drawing fire from legal aid groups who say the moves violate the spirit of a moratorium the company agreed to in November.
the mortgage- finance company continues to initiate court cases against homeowners and pursue existing cases, company spokesman Brad German said. Freddie and Fannie Mae, the government-sponsored enterprises seized by regulators Sept. 6, agreed to suspend “foreclosure sales” and evictions through this month after regulators urged them to help struggling homeowners modify mortgages to reduce payments.
Fannie had an inventory of almost 70,000 foreclosed properties at the end of the third quarter, while Freddie held about 30,000.
Fannie and Freddie, which own or guarantee almost half of the $12 trillion U.S. home-loan market, were taken over when regulators found the two were at risk of failing after posting record losses in the worst housing decline since the Great Depression.
Freddie Foreclosures, Eviction Plans Continue During Moratorium
By Dawn Kopecki
Last Updated: January 15, 2009 00:01 EST
** My Note ***
An anchor on cable news, I think it may have been foxbusiness just mentioned that there are currently 2.3 million homes currently in foreclosure. So, if we add that number to those which have already been foreclosed since January 2007 – what kind of number is that? Where are those families now?
Personally, I would love to know why can’t homeowners simply go buy those mortgages for 20 cents on the dollar like companies holding them have been selling them? People could put it on their credit card or take out a small bank loan and just buy the durn thing . . .
We are paying for businesses like Bank of America who now owns Countrywide, don’t they and every other banking, investment and mortgage holding institution, plus Freddie Mac and Fannie Mae – covering all their losses on mortgages and mortgage-backed securities and their compensation packages are preserved. Citibank’s sponsorship of a bowl game for $45 billion is secured.
Advertising and promotion budgets continue, private planes and spas, bonuses, retention bonuses, dental and stock shares are all protected. The list of benefits to these companies and their executives are extensive, and we are paying to make sure these are secure for them while they make every mortgage holder homeless, penniless, desperate and without any real option but to default.
So, the only purpose to the housing bailout moneys already spent was to keep the Senators’ Washington friends in their jobs and protect pensions and benefits for them – not to stem foreclosures.
What a lie we’ve paid everything to fix which isn’t fixing anything.
And, every day more money is spent by the Congress to “help the homeowners” – what is in the water up there in Washington that has caused contempt for the citizens of America that they “serve”?