I have a client in Boston and he has been softly looking for a second home in a warmer climate. He referred me to the Fannie Mae and Freddie Mac websites and highlighted a few homes. He wanted my opinion on value. He thought that some of the prices seemed high and he wanted to compare the prices on the Fannie & Freddie sites versus other foreclosures in the respective areas.
I looked at the subject homes...they were in Arizona and Florida. There were two things that immediately struck me as odd. The first is that there were not many homes listed in the websites. The second oddity was that the prices appeared to be above market. I kept looking and looking in different areas and was surprised at the scant number of listings.
So, I decided to look further around the sites. There were promises of special financing etc. It really seemed that purchasing one of these homes might be a good idea. A lot of value and value added services. However, when you clicked on the link, you are taken to a variety of lenders and it appeared that they were offering traditional financing with a lower down payment - an FHA type of scenario and nothing special. When I clicked on several of the “participating lender” links, they were either broken or took you to another section of the lender website with no reference to particular programs.
I then decided to look in areas that I may have interest. I was astonished to find ZERO listings in several areas. This is not possible given the number of foreclosures and the fact that the troublesome twins, Fannie and Freddie must have a massive amount of listings. What is the story??? Shadow inventory at Fannie and Freddie?? Government ineptitude in getting them listed?? Anyone have any thoughts?? This might be a fun topic to toss around!!