[quote author="graphrix" date=1258646312][quote author="gld42" date=1258643300][quote author="Sunshine" date=1258627450]I think gld42 heard <a href="http://www.irvinehousingblog.com/forums/viewthread/5788/#120084">the rumor</a> that I heard in August. It's kind of like those chain emails that come around every so often.</blockquote>
Nope, this is the 1st time I heard this kind of rumor. The person who told me also said " friend's friend's friend.... works at someplace related to FRE & FNE are busy with preparing release the REOs in 2010....... Rumor! 100% rumor! haha...</blockquote>
It's about a 50% rumor, only because we will have to wait and see if it comes to fruition. Like I said in the thread linked above, at least on the local SoCal portfolio level, in Q1 and Q2 the institutions have first dibs on this "release" because they have the ca$h to buy in bulk and give the banks/fannie/freddie the ca$h they need.
Fannie/Freddie have been notoriously slow in turning REOs around and they have a huge backlog to rid themselves of. Hence why they want the cash in bulk, they just need to get the sh*t off their books. Don't believe me? Do a title search by name for Fannie and see how many properties they own.
Also, Fannie has been leaking some prime portfolio deals out already. They are so desperate to get rid of them, that the discounts are truly shocking and will make an institution a very high double digit return. They don't own just conforming loan limit loans either... remember they had to compete with the big banks for the ALT-A space, and now they are paying the price.
I am 100% certain this is not 100% rumor, and anyone who says it is has no idea what they are talking about. But this is just the intarwebs, where hopes are dreams are made of...</blockquote>
So Freddie and Fannie are selling their shadow REO inventory in bulk, but not the notes before the foreclosure process happens, is that correct? Or are they getting so desperate that they are selling the notes in the middle of the foreclosure process?