Fannie Mae shareholders pain: $5 Billion Homes Unsold on 100 Mortgages

Fannie Mae, who is the largest U.S. mortgage finance company are giving their shareholders a lot of pain. There are reports that Fannie Mae have $5 Billion Homes Unsold, in one case a buyer would not pay $6,900 for the three-bedroom house, the broker who is handling the foreclosure has suggested cutting the price to $5,000.

Broker, Mergie has said that there seems to be an oversupply, in 2005 that same house sold for $110,000. Fannie Mae has acquired twice as many homes through foreclosure, it is these unsold properties that are now weighing heavy on the company’s stock.

Fannie Mae lost half of their stock since June 5, part of this problem were late payments along with a huge number of foreclosures.

Both Fannie Mae and Freddie Mac owned a record $6.9 billion of foreclosed homes on March 31. This figure is huge when you consider that $8.56 billion are owned by all 8,500 U.S. commercial banks and savings and loans.

Economists Ethan Harris and Michelle Meyer have said that both Fannie Mae and Freddie Mac stand to lose $1.39 billion on the foreclosed houses they currently own.