Fannie and Freddie Own A Record $6.9 Billion Foreclosed Homes

Fannie Mae acquired twice as many homes through foreclosure in the first
quarter as it sold, regulatory filings show. ... Late payments on the
company's home loans, a harbinger of foreclosures, almost doubled in the
past year.

Together, Fannie Mae and Freddie Mac, the two biggest U.S. mortgage finance
companies, owned a record $6.9 billion of foreclosed homes on March 31,
compared with $8.56 billion held by all 8,500 U.S. commercial banks and
savings and loans.

The typical price Fannie Mae received for foreclosed homes sold in the first
quarter fell to 74 percent of the unpaid mortgage principal from 93 percent
in 2005, according to Gabrielle Harrison, the company's vice president for
REO sales. REO stands for :real estate-owned," a designation for properties
that have been repossessed by creditors, reports Bloomberg.

http://www.economicpolicyjournal.com/2008/07/fannie-and-freddie-own-record-69.ht...

Editorial comment:

That roughly equates to a 66%% drop in home values.

I wouldn't be at all surprised if the US Army is tasked with bulldozing
those abandoned homes.