KOLD News 13 live, local and late breaking-National news, local angle: Treasury to help Fannie and Freddie
By J.D. Wallace - email
As the number of defaulted loans continues to rise, federal bailout of two mortgage giants means we all pay for the actions of some.
"It's really coming to a head right now," said Tony Poe, a loan officer for Long Mortgage. "This whole thing is a cleansing process, but the finger can be pointed at everybody--the buyer, the seller, the realtor, certainly Wall Street, and the lenders, too."
But Poe said that the Treasury's takeover of mortgage giants Fannie Mae and Freddie Mac on Sunday also buys us stability.
"We really can't let Fannie (Mae) and Freddie Mac falter, because it would put the whole economy in turmoil," Poe said.
He said that the Tucson real estate market has already been improving.
"The supply is coming down," Poe said about the number of houses on the market.
Poe said that Tucson had about 10,000 properties listed for sale at the beginning of the year, and that now the number is down to about 8000. He considered 5500 to be the goal, and expects the market to reach that sometime next year.
"We're moving product, the listings are coming down, so prices are stabilizing," Poe said.
Now those ready to buy must really prove it.
"What we're going to have to do is get back to the basics, we're going to have to actually check income, we're going to have to check employment, make sure you have a job, and you have some assets in the bank," Poe said.
Those who do have the money could find some opportunities.
"They're buying lots, sitting on the lots, and they're waiting for this market to turn around," Poe said.
Poe said that he expects Tucson home prices to stabilize much faster than Las Vegas or Phoenix.
If there's a return on the investment in the two lenders, the federal government will receive it before the shareholders.
