I have no idea if there’s any truth to this article, but if there is… :mad:
First question: does “Freddie Mac” buy property (directly)?
I don’t think so. If not, it shoots the entire premise of the article to hell, dunnit?
I don’t know if it does or not. One of my reasons for posting this was to determine if there’s any truth to it.
If you can show that Freddie Mac cannot, or at least does not, buy property then that would answer my question.
Well, I have no personal knowledge of how these institutions (might as well get Fannie Mae into it also) actually operate. But my understanding (from Wikipedia and news articles, so I can’t claim my knowledge is actually trustworthy) is that they deal with mortgage-backed securities (i.e., pools/packages of mortgages).
Again, AIUI and contrary to many peoples’ beliefs, Fannie and Freddie DO NOT originate loans, nor even deal with individual loans. If my understanding is correct, this is one reason why the “Fannie/Freddie caused the housing crisis” talking point is overblown, misguided, and (often purposely) misleading.
If I’m wrong, I’d sure like to know it…
I think you’re right about them not originating loans. The question is, do they buy properties outright? If they haven’t in the past, have they started to?
I’m having certain credibility issues with a “citizen-journalist” who uses the phrase “lamestream media”.
An actual journalist might have done a better job of explaining how they knew who bought the property and why, if it was Freddie Mac, why they would want it . The article as it stands has the same credibility as “I heard it from a guy who knows someone.”
Maybe they’re trying to shore up the housing market house by house?
I’m sorry you didnt think I did a good job of explaining the foreclosure racket & how the 2 Freddies buy up properties from the banks - In mitigation I try to keep my reports short & to the point. Too muich detail & most readers will switch off.
But I assure you this is a true story & its going on all over the USA. How do I know? Because as the article says I went to the auction and weeks later visted the clerk of the courts & looked up the records of who was doing the purchasing at the auctions, for how much etc.
Since then the property has been put back on the market by Freddie & sold to a police officer for about $30,000 less than they paid at the auction!
You can check this scam out in your local area - all the info is there . Go to the auctions & visits the local court records for the details.
Sorry, if you dont like the term ‘citizen-journalist’ - but I’m not part of the ‘lamestream’ media - I dont know what else to call it but you are being fed a crock of shit by the TV (incl PBS), newspapers etc
Ted Newcomen
Yeah, I’ll get right on that, right after I clean the lint out of my belly button.
At most, Freddie Mac may have purchased the loan from the person who purchased the property, then bundled the loan into a security. That’s the main reason they exist. They do not buy property.
This part is not true and fairly easy to debunk. Countrywide had not “gone out of business” when they were acquired by Bank of America. They were clearly in financial distress (although they denied it), but they had not filed bankruptcy or anything like that. Bank of America did have $45 billion of TARP funds, but $20 billion of it was related to Merrill Lynch, which was sort of a forced merger during the financial crisis. The biggest issue that is wrong though is the method of repayment done by Bank of America. They did not simply pay back funds from a government loan. That is blatantly not true. They actually raised capital from outside investors. It could be argued that they repaid a portion of the funds from other government programs, but a big chunk that was paid back obviously comes from an $18 billion stock offering they completed at the same time they paid back TARP.
400 Quatloos on the newcomen.