The Robo-Signing Saga Continues

Freddie Mac and Fannie Mae have recently ended their temporary ban on selling foreclosed homes in the latest installment of the “Robo-Signing Scandal.” After cutting ties with the law firm that allegedly forged signatures and hid flawed files from auditors, the two government-sponsored entities (GSEs) have given brokers the green light on marketing foreclosures or completing the sales of those already under contract.

Freddie and Fannie own or guarantee about half of all U.S. home mortgages. With 31 million loans worth about $5 trillion, the two GSEs are significant players in the distressed property market. Around 1 percent (250,000) of Freddie’s and Fannie’s mortgages are foreclosures, while another 8 percent (2.48 million) are currently delinquent.

As an agent today, odds are you will help someone who is currently behind on a Freddie or Fannie-backed loan, perhaps even one in a short sale situation. But right now, time is running out to find alternatives to foreclosure … and this is a message all homeowners need to hear!