Fannie and Freddie's Big Foreclosure Backlog

[Sorin T]

Good reading

http://news.yahoo.com/s/bw/1106b4214044575550

As their holdings of unsold homes increase, Fannie and Freddie eventually will need to drop prices and turn to investors, analysts predict

The bottom line: Fannie's and Freddie's strategy of not flooding the market with foreclosed homes may come under pressure as their inventory builds.

[Uwe S.]

I think there is an error in reasoning.
Stabilize neighborhoods with prices at market levels is well and good, but if they can´t sell these properties - than what?
Properties vacant for long times and bring crime into neighborhood, with all copper stealing and vandalism. This will drop the neighborhood into a bad light and maybe it will destabilize.
So they risk new problems. Better is to sell for cheaper price and have occupied properties, this will stabilize.

-Uwe