Fannie bares her teeth | GLTNewsNow.com

Fannie bares her teeth | GLTNewsNow.com: "Freddie Mac and Fannie Mae – the hillbilly kissin’ cousins of the nation’s secondary mortgage market – instituted a long-needed reform to the sale process of its REO (foreclosed) properties.� The “First Look” program gives buyers purchasing a primary residence for their own use, a 15-day head-start before investors can submit offers on the same property.

Nearly 18 months ago I met with the field staff of Congresswoman Susan Davis‘ office on this matter and I was glad to see both Fannie and Freddie get on board. The problem in a nutshell is this: Investors, including large syndicators began snapping up foreclosures at an astonishing rate converting large percentages of owner-occupied housing into rental stock.

What’s wrong with this picture? Well, if you’re a condominium owner or an HOA and your complex goes from 15% absentee-owner to 75%, the effects are immediate and profound. Wear and tear on the building goes up as the average length of occupancy plummets. Absentee-owners tend to vote against assessments and improvements looking strictly for profits. Similarly, they may have fewer concerns about adhering to notions of ownership pride and upkeep."

read much more by clicking title link above