Banks and Their Court Actions to Remain Invisible

Fannie responded to my queries, after I gave up, and referred me to a company they use to handle the foreclosures, and other real estate matters. I found out that we were rejected because there was uncertainty as to whether the new septic system could be installed in the winter. What is interesting is that the property showed back up on the market this week, disclosing the need for the septic. Their answer doesn't hold much authenticity given they are trying to sell the property again. I consider it a positive to even receive an answer of some kind.

In previous blogs, I commented on how the Treasury and banks went to court to prevent the public, us, from seeing who used the discount window during the crisis and their borrowing patterns. The appeals court said they had to show the information. Today, I saw that the banks, like Bank of America, JP Morgan Chase, Citibank, are going to appeal this to the Supreme Court. I strongly believe that transparency with these banks is essential. The more visibility we have, the less power they over us financially. Their actions using the court system is to retain that power. These banks were rescued when they should have been allowed to struggle for survival. They can still be humbled them if this information is made visible.

Time's Up

Trying to interact with Fannie Mae is like whispering in the wind. After finding out that they pulled the property we made an offer on off the market and also stopped the auction process to reassess where they stand, I decided to end my quest to understand what they are doing as a company. It is discouraging to know that the losses on these repossessed home are partially reimbursed by the federal government to minimize the impact to the bank holding the loan. We have moved far away from the impacted individual and are making sure we don't have any potential bank failures to manage. What should happen is that the banks take responsibility for their business mistakes and swallow the losses. The federal government is like an ostrich with its head in the sand as the predator approaches quickly.

Whether it is judged good or bad, we are all involved in what is unfolding. It will serve the greater good. Trust that and look for that view. We are trying to preserve, but there are many loose pieces of sand that are unmanageable. In the natural evolution of life, there comes a time to fall apart, just like there is a time to create and maintain what is created. The current path this country is on has outlived its usefulness. We are in the process of a transformation.

Fannie Mae up close and personal, final round

Yesterday, we heard that Fannie Mae had accepted our offer and then changed their mind. Their plan is to auction the property. This place needs a new septic system. We had added the price of that into our offer with the stipulation that they would be responsible for installing it and getting the city to approve it. We have surmised that they didn't want that responsibility. We are unclear what they are thinking since they tried auctioning it before, but we have heard that they have no intention of exposing the septic problem. This is clearly unethical, and I think illegal and it's happening in Southern Oregon. Another surprise when we heard they refused our offer is that the realtors representing us and the bank were only going to receive 1% each. That is 'unjust.' There is a lot of work they have to put in to handle an REO. Our realtor is going to write to her senator, representative, Board of Realtors, and Fannie Mae. I have decided to write to our two senators, representative, and Fannie Mae. Any information I receive I will share here. I wish all those who are attempting to buy an REO the best experience possible.

One point that we are all in agreement on is that we learned a lot about the process that comprises at least a 1/3 of the real estate market. and how buyer unfriendly Fannie Mae is.

One final point, I voted absentee ballot yesterday. Please vote.

Fannie Mae up close and personal

I have talked about Fannie Mae and Freddie Mac several times; two government run organizations that are considered too big to fail. Three weeks ago, we submitted an offer with two other people to Fannie Mae on a home in Grants Pass. The two have been disqualified, yet no response to our offer. We told the realtor yesterday that we are ready to withdraw the offer. The main reason is that winter is approaching and we live at 4100 feet elevation. We do not want to move in the snow. She communicated with the other realtor who interfaces with Fannie Mae and found out that they were moving to auction it off. Then we heard that they have already tried that with no buyers. The final words we heard were that Fannie Mae was shut down for 30 days due to a computer upgrade. Given that they have at least 191,000 foreclosed homes on their plate, we were disbelief that this could be possible, and that they could be this disorganized. This would never happen in a private business. These two companies have no incentive to be efficient, save money, or respond in a timely manner. They are a great example why we do NOT want bigger government. There is no incentive to perform.

There is no downside for them like a business that would no longer exist if it acted in this manner.

After I moved through my emotions around this, I stepped back and know that the Universe is looking out for the greater good. We cannot escape our feelings, but once we understand their purpose, then we can trust the bigger picture. By the way, we gave the realtor until close-of-business next Friday to come through. If not, then Fannie Mae can keep it on its plate with the others.