Is this why the banks are in a hurry to foreclose??

[kentuck]

Received this in an email from Washington Post:

"Fannie and Freddie will likely receive billions more from the federal government, reports Zachary Goldfarb: "In the most likely, as defined by the agency, which regulates the two companies, housing prices would decline slightly amid a modest economic recovery, and then inch upward. In this scenario, the total bailout of Fannie and Freddie would cost $19 billion more, or $154 billion. A more optimistic projection has the housing market springing back to life sooner. In this case, the companies would need just $6 billion more, or $141 billion. Finally, in a darker scenario, in which housing goes into another tailspin amid a second recession, they would cost $124 billion more, or $259 billion."

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Fannie and Freddie are us, the taxpayers. Are we paying the banks for the houses foreclosed upon? Is that part of the "deal"? Does anyone know?

[mediaman007]

1. I know nothing, but I remember reading somewhere that

the Federal government pays 60% of the mortgage and the banks get to sell the property and keep the profit.

[glowing]

2. As far as I know with my loan.. it was a special program 100% federally backed

The bank got the money for free and if I pay make more money... If they foreclose, they apparently keep that money. They don't care if I'm in the home or not.. If I'm not paying them; they'll flip me out... However, its taking soooo long where I live that they are finally trying to modify.

[Lance_Boyle]

3. Not sure why they need more bailout. Both have been buying up performing mortgages

with taxpayer money from their last bailout. My refi last year didn't last 3 days with the lender before Freddie Mac bought it. Are they just looking for more icing for their cakes at this point?