Bloomberg article

You really need to read the Bloomberg article I quoted in my previous post.

Fannie Mae Unsold $5 Billion Homes Bring Peril to Shareholders

Once you've read it, please tell me that it doesn't reek of socialist housing already implemented. One of the biggest problems of foreclosed homes is that nobody is paying the property tax and upkeep. When Fannie and Freddie step in and purchase these mortgages that foreclose, they continue to pay the taxes and other expenses.

It costs creditors such as Fannie Mae 2 percent of the value of the property every month in taxes, insurance, utilities, lost revenue, maintenance, management and cleanup after vandalism, Williams estimates.

That money is just flowing through to states and local goverments, probably at the artificially inflated peak home prices. There is no way these companies can continue this without taxpayer support.

This article subtly points out some things about Fannie and Freddie that are just outrageous to me.