The Role of HUD and Fannie Mae in the Foreclosure Meltdown

Posted on May 30, 2008
Filed Under Foreclosure Homes | 3 Comments

The role of HUD and Fannie Mae is an important one in the present foreclosure meltdown the country is facing. HUD is the Department of Housing and Urban Development. Fannie Mae is a semi government company and is the largest in house loan business. HUD is a federal agency.Both have been and committed to the cause of expanding house ownership. Little wonder then that like other mortgage houses, HUD and Fannie Mae too are swamped with foreclosed units. Local watch-guards however claim that Fannie Mae is wired with red tape and HUD is messing up matters.

There is a piece of land with a dilapidated building that has run to seed in Slavic Village. Stacy Pugh contacted Slavic Village Development Corporation – the interest emanating from the fact that the area has been ear marked for public and public development. The inspectors that came along to see it immediately condemned it because the foundation had caved. Fannie Mae had acquired the house after it got entangled in foreclosure. Pugh asked Fannie Mae to donate the building. But there was money for demolition but not for buying. Fannie Mae had to think about stockholders and so donation was out of the question. In the end the house got sold to one Stevenson Mathieu from Florida, on the Internet.

Stevenson Mathieu says that he paid $2,000 for the unit. He had bad credit butPugh claims that he did not have the funds to do the repair work he had promised to do. Mathieu’s contention is that he had plans to repair his bad credit ratings after having bought the house. Considering the importance of the area the locals filed a suit. Mathieu did not want trouble and offered to donate the house. He took the keys and handed it to Pugh in the middle of the court. Ultimately Pugh got her wishes fulfilled and the city of Cleveland had to bear the demolition cost. Non-profit agencies paid the legal expenses. Mathieu was paid off $2,000. This did not include the gas he had to spend to show up at Cleveland court.

Gabrielle Harrison of Fannie Mae said that the target should be to sell to those who wish to reside in the area and occupy the house. Preference should be given to locals who have more interest in the locality.

Search Repo Homes

• Arizona Repo Homes
• California Repo Homes
• Florida Repo Homes
• Georgia Repo Homes
• Michigan Repo Homes
• Ohio Repo Homes
• Texas Repo Homes
• Repo Homes In Other States

Popularity: 11% [?]

Related Tags

• government repo homes

• middle ga repos homes

• seo forum

Comments