Fannie Mae Backed Mortgage Loans

In the past month, Fannie Mae has become stingy in granting extensions on auction dates even when the seller is in contract with a ready, willing, able buyer who is paying fair market value for a short sale property. This makes no sense to me because Fannie Mae is a government backed loan.
In almost every case, Fannie Mae would receive more money from the completion of the short sale. But, no, Fannie Mae refuses to extend the auction date so the short sale can be completed. Instead, they force the homeowner to go into foreclosure. When the house forecloses, the lender needs to take the house back and care for it. Now the lender needs to pay for the utilities,the lawyers, the pool service, the landscape service, and the commissions for the realtors involved in the new sale. Typically, the house comes back on the market for a lower price than what the short sale buyer was willing to pay. So, in the foreclosure, Fannie Mae receives less in the foreclosure sale than they would have received if they had waited a few weeks and completed the short sale. And,the foreclosure closes typically 3-4 months later than the original short sale closing date.
When Fannie Mae agrees to take this greater loss, who is the big loser. WE ALL ARE. The Fannie Mae loan is government backed. That means that loss increases our US deficit. Ultimately, you and I will pay for this loss thru our taxes.
We can only fight this process by contacting our US representatives and by voting for those politicians who are willing to fight for us and stop increasing the national debt.