REO bulk Sales and Fannie Mae – Temecula Real Estate – Troy Sage

by troysage on August 21, 2012

in Foreclosures

REO bulk Sales and Fannie Mae – Temecula Real Estate – Troy Sage

Attention Home Sellers and Home Buyers.  This will effect everyone in the Inland Valley.  Fannie Mae is pushing forward with REO Bulk Sales.  What does this mean?  This means that after our Federal Government has Bailed them out with Billions of Dollars, they are taking the REO properties on their books, and selling them in Bulk to investors.

Here’s where things get absolutely corrupt, in my opinion.  Fannie Mae has established a LLC in California in which they are transferring their REO properties, then they will package these properties for sale.  Meaning, after the Feds have bailed them out, most of the Banks and Investors in the country have sold their non-performing mortgages to Fannie, and all the big bankers and investors have been writing off their losses, Fannie will now sell these bogus loans and REO’s to investors.  Lets think about this for a moment.  If you’re an investor that just sold non-performing assets to Fannie Mae, wrote off the bad debt, and began to rebuild your portfolio, you now have the ability to repurchase these investments back at a discount.  How does this help the economy or the majority of home buyers?  It is my humble opinion, it doesn’t!

The California Association of Realtors has written numerous letters and begged local Representatives to put a stop to the madness, and demand Fannie Mae (A publicly traded company, not a government owned company) has refused to comply.  Again, more corruption, and yes more devastation to our local Real Estate Market.  Not to mention a possibablity of increased taxes.  I guess that is to be expected anyway, if you’ve been following our illustrious Government and all the crap they have sold the general public.

All reports of this action by Fannie Mae show the bulk of these REO properties are located in Riverside, LA, and San Bernardino counties.  Please keep in mind the REO properties Fannie Mae will be selling in Bulk, have never been marketed for sale to the general public.  Even though our market has been stabilizing for the past 9 months, with an average Days On Market being less than 45 in most areas, Fannie Mae is choosing to not help the market, but instead Dump properties just to clear their books.  Again, more crap.  Anyone in the Real Estate Business knows that REO Properties are selling at or above market value due to the lack of inventory.  It is my humble opinion that Fannie Mae should bring in more Real Estate Professionals to list, market, and sell the properties.  This, again in my humble opinion, would be the unselfish and right thing to do for EVERYONE!

The State of California has done the following to help prevent this REO Bulk Sale:

In May, California Congressmen Gary Miller (R-Brea) and seven other California congressional members introduced a bill that called for FHFA to cease its bulk sales plan in California.  H.R. 5823, the “Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of 2012,” prevents the FHFA from implementing the sale of Fannie Mae real estate-owned (REO) properties in California to institutional investors.

The introduction of H.R. 5823 followed on the heels of a letter Congressman Gary Miller and 18 other California Congressional members sent to the FHFA in April asking the agency to refrain from implementing its “REO Initiative” pilot program in California.  The letter stated, “We are concerned that including California counties in this initiative is in direct conflict with your duty as conservator to preserve and conserve the Company’s assets…  In California, there is no question that disposing properties through bulk sales will yield a lower return for the GSEs and taxpayers than through traditional disposition methods.  This means that such a program will increase losses to the taxpayer and GSEs,” the letter concludes.

So I’m asking anyone that reads this post to contact their local Representative and let them know how you feel about Fannie Mae and their REO Bulk sale program.  We’re all in this together my friends, and the only way we will create change in the Market and our Country is to be proactive, call your representatives, write your representatives, and VOTE!!

Please feel free to contact me with any questions or comments.

Information provided by Troy Sage and the California Association of Realtors

Below is the letter I received from the California Association of Realtors today:

As I’ve been communicating to you over the past year about the Federal Housing Finance Administration’s (FHFA) REO “bulk sales” pilot initiative, I have an important update to share with you.

Despite vehement opposition from C.A.R. and California Congressional members, the negative economic impact to the state’s housing market, and cost to taxpayers, FHFA is moving ahead with its REO bulk sales initiative, which calls for the sale of nearly 500 Fannie Mae-owned foreclosed homes in the Los Angeles and Inland Empire areas to undisclosed institutional investors.

Not only are Fannie Mae and FHFA moving forward with the plan, they are doing it in a secretive manner and are refusing to disclose any details.  We are disappointed they fail to understand that this initiative will harm the communities in which it will be implemented and are carrying out this ill-conceived plan.

In response to FHFA’s failure to implement the REO initiative in an open and transparent manner, C.A.R. is filing a request for details through the Freedom of Information Act.

FHFA, Fannie Mae’s conservator, announced earlier this summer that winning bidders in the foreclosure auction had been chosen, with transactions expected to close in the third quarter. But FHFA didn’t release any details of the transactions, such as property locations, final property count, sales price, or names of winning bidders.

While FHFA and Fannie will not provide details of the transaction, C.A.R. has confirmed that Fannie Mae has created an LLC in California, called SFR 2012-1 US West LLC, to transfer the foreclosed properties from Fannie Mae to the LLC.  It is unknown whether the winning bidders will purchase the full LLC or only a share, thus splitting the ownership between Fannie Mae and the winning bidders.

This REO initiative poses a direct threat to the Inland Empire housing market. According to C.A.R. statistics, the targeted properties are in markets that have seen significant stabilization over the last three years.  Not only is the Inland Empire experiencing a severe lack of available housing, demand is also strong, and REO listings are selling in less than 30 days.  In fact, the unsold inventory currently stands at a 3.1- and 3.8-month supply in Riverside County and San Bernardino County, respectively, half of the long-run average of 6 to 7 months.

C.A.R. is also concerned that FHFA and Fannie may have used antiquated market data, perhaps as old as 2011, to determine property valuations.  Because the bulk sales initiative is only now in the process of closing, these dated valuations will drag down comparables and harm the Inland Empire housing market, which has shown strong signs of stabilization.  Additionally, because of this price discrepancy and the very nature of bulk sales, we believe Fannie Mae is assured to not receive fair market value of the properties, thereby saddling taxpayers with their loss.

We have voiced our opposition to the bulk sales program with Acting Director Edward J. DeMarco on numerous occasions advising him that investors don’t need government incentives to purchase properties by offering REOs at a discount price and that home prices will be further depressed in affected areas.

C.A.R. also has provided FHFA with multiple updates on California’s housing market conditions over the past year, which it has clearly ignored.  FHFA has provided no rationale or supporting evidence to C.A.R. leadership explaining why it is moving forward with the sale of unmarketed REO properties, despite the overwhelming evidence C.A.R. has provided why bulk sales shouldn’t be pursued.

In May, California Congressmen Gary Miller (R-Brea) and seven other California congressional members introduced a bill that called for FHFA to cease its bulk sales plan in California.  H.R. 5823, the “Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of 2012,” prevents the FHFA from implementing the sale of Fannie Mae real estate-owned (REO) properties in California to institutional investors.

The introduction of H.R. 5823 followed on the heels of a letter Congressman Gary Miller and 18 other California Congressional members sent to the FHFA in April asking the agency to refrain from implementing its “REO Initiative” pilot program in California.  The letter stated, “We are concerned that including California counties in this initiative is in direct conflict with your duty as conservator to preserve and conserve the Company’s assets…  In California, there is no question that disposing properties through bulk sales will yield a lower return for the GSEs and taxpayers than through traditional disposition methods.  This means that such a program will increase losses to the taxpayer and GSEs,” the letter concludes.

C.A.R. will continue to fight the implementation of bulk sales in California, and I will continue to keep you updated on this important topic as it unfolds.

Sincerely,

LeFrancis Arnold
2012 President
CALIFORNIA ASSOCIATION OF REALTORS®

 

REO bulk Sales and Fannie Mae – Temecula Real Estate – Troy Sage

REO bulk Sales and Fannie Mae – Temecula Real Estate – Troy Sage

REO bulk Sales and Fannie Mae – Temecula Real Estate – Troy Sage

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Post by Troy Sage

When the expression “Covering All Angles” comes to mind, we think of perceptive people who stand out from the crowd because of their foresight. By anticipation how any given scenario may play out they prepare a solid plan based on hard facts and respond by always providing their clients with a winning plan. Meet Troy Sage, a true original who enjoys being his own man and, constantly seeking new and innovative ways to improve the way he conducts his business and the people he serves. As a sought after real estate consultant for over 20 years, Troy utilizes many of the skills he developed in his musical career to grow his business. Attention to detail and his desire to excel, his determination to offer exceptional service while “Covering All Angles” keeps clients coming back time and time again. For Troy, client satisfaction has always been his prime concern. “By listening carefully to my client’s needs, I prepare a personal plan to ensure that they are kept well informed throughout the entire process in order to make sound decisions based on solid facts. Above all, it’s about the connection between my clients and myself. I work hard to personally nurture each relationship and am dedicated to helping my clients reach their real estate dreams,” Troy says smiling. The end result is that Troy has cultivated an enviable base of loyal clients who have spread the work to family and friends and who count on him for all their real estate needs. As an established trainer Troy works with new and seasoned real estate professionals teaching a variety of classes and techniques. Establishing a custom game plan for each professional and coaching others gives Troy a true sense of satisfaction and of sharing and growth. Troy is a Certified Distressed Property Expert (CDPE) and offers the most professional short sale facilitation and processing services available. Clients know that the short sale process can be a long and arduous task but left in Troy’s expert hands, they know that he will not only predict what problems might arise, but that he will have a proactive solution on how to best handle the situation. His positive attitude and calmness go a long way when dealing with the Banks, the Buyers, the Sellers, the Agents and Escrow. Troy not only keeps all sides well informed and up to date but is there to answer any questions that come up along the way.

Troy has written 196 articles.



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