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FNMA Foreclosures Helping Pull Down Jacksonville Home Prices

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By : John Cutts    99 or more times read
FNMA foreclosures are contributing to the continued drop in house prices in Jacksonville.

With plenty of Fannie Mae-guaranteed condos and homes that were repossessed in Jacksonville, the price median for homes in the metro area dropped by 6 percent in April to $142,700. The plunge in condo prices was even steeper as the price median fell to $64,400, a staggering fall of 45 percent.

As of the end of December, the Federal National Mortgage Association or Fannie Mae had a total of 86,155 foreclosed homes nationwide on its books, and a number of these are located in Jacksonville. More are expected as the default rate continues to rise for Fannie Mae loans.

In the first quarter, Fannie Mae posted a staggering loss of $11.5 billion as a significant portion of its finances were spent for provisions for loan losses, guaranty losses and expenses for FNMA foreclosures. Fannie Mae and Freddie Mac now hold about 50 percent of the $11 trillion mortgage market throughout the country.

With Florida posting the second-highest number of foreclosure filings in April, it is highly likely that a significant number of these homes affected were bought with Fannie Mae-guaranteed loans. In April, a total of 9,259 of these houses in trouble became foreclosed homes for sale, an increase of 7 percent from the 8,643 units that were purchased back by lenders in March.

With the statewide median home price falling by five percent in the first three months to $133,800 and the price median for condos dropping by 13 percent over the same period to 95,800, finding and buying Florida cheap houses for investment purposes or for own use is a practicable pursuit in the state.

In Jacksonville, foreclosure postings also spiked in the first quarter by 38 percent over the year to over 7,800 filings. This continued rise in foreclosures and the continued fall in prices are two of the reasons people are looking for FNMA foreclosures in the metro area and pursuing Jacksonville foreclosure investing.

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