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List of Fannie Mae Foreclosures and Bank Foreclosures Impact Business



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By : John Cutts    99 or more times read
Analysts have stated that the continuous increase in the number of properties under bank foreclosure listings and list of Fannie Mae foreclosures is not only causing thousands of homeowners in Georgia to lose their properties, it is also affecting the banking industry.

Two rural banks in the state recently failed, taking the total number of bank failures in Georgia to 46 for 2008-2010. According to real estate market observers, the failure of the banks has a lot to do with the huge number of distressed properties in the region, including Decatur home foreclosures.

Both First National Bank and Gordon Bank, the two institutions that were recently taken over by other banks, have tie ups with real estate and are therefore affected by the crisis of Georgia home foreclosures. In 2010 alone, 16 banks have already been shut down in the state, with the year still not over.

First National was purchased by United Bank, while Gordon Bank was taken over by Morris Bank. List of Fannie Mae foreclosures and bank foreclosed listings continue to expand in the state and this factor has been largely blamed for the failure of local banks. According to industry observers, both Gordon and First National failed because they relied heavily on real estate.

Local reports reveal that around 75% of First National's loans are associated with real estate as of the end of June 2010. Over 30% of these property loans are past due or are tied up with properties under lists of foreclosures. It has been estimated that First National posted a loss of about $7 million in the first six months of the current year.

Meanwhile, over 40% of loans by Gordon Bank are reportedly either in default or in foreclosure. Morris Bank, which took over Gordon, will be acquiring over $11 million worth of assets that are mainly in the form of cash. The U.S. Federal Deposit Insurance Corp. (FDIC) is expected to lose around $9 million for Gordon's failure, while First National will cost FDIC over $33 million.

Since the growth of bank foreclosure listings and list of Fannie Mae foreclosures is showing no sign of a slow down, some industry observers in Georgia are predicting that more banks and other businesses that have real estate tie ups will end up failing in a few months time.


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