Opinion Politics

Congress looking at bulk sales of foreclosed homes by Freddie Mac

This post was published 9 years ago. Please, read this page keeping in mind that this home may have sold by now. You can always check current status by calling or texting (530) 356 4500 The Address Realty DRE # 01710206

Well, at least one congressman. Readers will recall we asked our congressman Wally Herger to try and help stop my client’s (potential) home from being taken out from under them, and sold to an investor in a bulk sale. Such an insider sale would harm my clients, and the action seems directly in opposition to the housing mission of Freddie Mac. Well, today I got a call from Rachel Alexander in congressman Herger’s Washington office. She apologized for the delayed response. It seems they’ve been struggling out there with a little thing named Hurricane Sandy. Perfectly understandable. Anyway, she said she had a message in to the Federal Housing Finance Agency (FHFA), which has authority over Freddie Mac. She anticipated that we should have an answer back in a few days. That would be terrific.
FHFA header
She said it was her understanding that the bulk sales were to apply only to the hardest hit areas, perhaps Florida or Las Vegas, where there were simply no other homebuyers. That certainly isn’t the case here! We have buyers, and no homes to sell them. I pointed out that just a while back there were often over 250 foreclosed homes for sale around here, but today the total number of available REO inventory was just 87 homes. That’s not many when spread out across our large region. Meanwhile the pace of foreclosures have hardly slowed at all, yet we have few REO homes for sale. Foreclosing and then selling homes in bulk to investors is only making our local housing market worse off.

So hopefully we’ll hear something from FHFA soon. Some good news perhaps, good for my first time homebuyers. It’s understandable that such an oversight might occur given the size of the problems that our government faces, having inserted itself so deeply into the housing market. But hopefully common sense will prevail in this issue. We’ll keep you informed.

We were about to go up the chain, to Senators Feinstein and Boxer, but both of them wanted the request by mail (!). Welcome to 1991, senators. So, kudos to congressman Herger for being more accessible. Rachel indicated they would be working as hard as possible even though their office is winding down, as the congressman is leaving office. This episode brings focus to how important the upcoming election can be to real people trying to effect real change in government. So please exercise your duty to educate yourself about the candidates and choose wisely.

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