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Lists of Government Foreclosures Getting Longer in Every U.S. City

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By : John Cutts    99 or more times read
The lists of government foreclosures are getting longer in most cities of the U.S. as government-sponsored enterprises (GSE) Freddie Mac and Fannie Mae foreclose on homeowners who have defaulted on loans provided by the two mortgage firms. As of March 2010, the two mortgage providers have a combined 163,828 homes under their ownership.

Almost all of the cities in the U.S. have, at one time or another, sold a property foreclosed on by Freddie Mac or Fannie Mae. In Indiana, South Bend bank owned homes might comprise the majority of foreclosed properties for sale, but it does not mean that the GSEs have not done business in South Bend.

Bank owned properties in Indiana might not be as many as in other states, but a considerable percentage of these foreclosed properties are owned by the mortgage giants. Real estate market observers have reported that both Fannie Mae and Freddie Mac have hired thousands of real estate agents to sell the foreclosed properties under their books.

According to these real estate agents, as they sell a hundred houses a month, another hundred comes in and are added to the lists of government foreclosures. Property market experts have stated that the decision of the government to take over the two mortgage companies might cause the public more than the federal rescue programs meant to revive the nation’s housing market.

While bank owned foreclosure listings in some cities are finding level grounds, analysts claim that the cost to U.S. taxpayers of the government’s takeover of Freddie Mac and Fannie Mae is escalating. This, analysts believe, could eventually hinder the anticipated housing market recovery.

The takeover move has been estimated to be costing the government almost $150 billion so far and is expected to further increase with every property foreclosed on by the two mortgage firms. Analysts have added that the longer the lists of government foreclosures get, the more it would cost the government and the more it would affect taxpayers.

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