View From Stockton As "Stuff" Hits The Fan (nie) And Freddie
And if banks can’t handle the residential real estate business, what happens if the federal government, now running Fannie and Freddie, are forced into it?
It seems incredibly unlikely, as Fannie and Freddie merely securitized mortgages, and it has been the loan servicers which have ended up owning the deadbeat houses. But many “incredibly unlikely” things have happened in the last year. Imagine the mess if some bureaucrat in Washington has to decide which bids to accept on thousands of foreclosed homes 3,000 miles away in Stockton.
Realtor Kevin Moran is hanging on, hoping to ride it out. You could say Moran himself personifies all that’s happened in Stockton. Since we first met a year ago, his income has collapsed, and his own home went into foreclosure. Like a lot of other people around here, he’s trying to regroup. “My ego wants to say it happened to everybody,” he says. “And then my other side wants to say how foolish I was, and I think the truth is somewhere in between the two.”
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