Government's Role in Country's Ever-Collapsing Housing Market

Tuesday, July 20, 2010

housing, house, foreclosure, foreclosing House in foreclosure. (Respres/flickr)

The number of foreclosures on houses in the United States is growing at a rapid rate. The signs of a broken housing market have permeated nearly the entire country. With the federal government now in control of mortgage finance giants Fannie Mae and Freddie Mac, is it fair to blame the feds for the crisis?

The statistics are staggering. Nearly 528,000 homes were taken over by lenders in the first half of this year and the country is on track to see the repossession of one million homes by the end of 2010. By comparison, lenders have historically taken over approximately 100,000 homes yearly.  

Guy Cecala, the publisher of Inside Mortgage Finance Publications, says that things are still going to get worse before they improve. We also talk with Memphis, Tennessee resident and realtor, Phelisha Harris, who sees signs of the damaged housing market everyday in her neighborhood. 


Guy Cecala and Phelisha Harris

Produced by:

Posey Gruener and Amanda Moore

Comments [3]

Mary from New York

There is a huge "shadow" inventory that's not even showing up on any housing reports.
Someone I know stopped paying his $1777. mortgage payment in August, 2009. According to the condo is in "pre-foreclosure".
One year later it's in PRE?
The banks do not want to take on the maintenance and the loss on their books. So, what does that say about the banks' general fiscal health?

Aug. 05 2010 10:47 AM
Claudia from NYC

I would like to know the inside scoop on Harlem. Does anyone have very up to date info?

Jul. 20 2010 05:27 PM
Bob Idakaar from Morris County New Jersey

I am a a top producing Realtor in Morris County New Jersey for 13 years.
We are seeing a huge decline in sales and in prices. Home prices are dropping in double digits in some areas.
There is such a small buyer pool and such an incredible lack of urgency to buy.
It seems like it is the end of normal civilization!

Bob Idakar
973-538-7655 X 319

Jul. 20 2010 05:05 PM

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