Chicago Tribune has some interesting numbers, with some insights into how Fannie Mae and Freddie Mac view their foreclosed home inventory.

“As home prices decline, unsold properties are a problem for creditors like Fannie Mae because taxes, insurance and repairs drain their cash. Fannie Mae acquired twice as many homes through foreclosure as it sold in the first quarter, regulatory filings show, and late payments on its home loans—a harbinger of foreclosures—almost doubled in the past year.”

If Fannie is acquiring twice as many homes as it is selling, there will be a point where the cash outlay required to secure and maintain these foreclosed homes becomes significant, if not impossible to continue.  The GSEs make a profit by providing credit, not by carrying devaluating assets in the hope of preserving neighborhood values.  It’s true they have a vested interest in trying to slow home price depreciation, but consumers are what drive real estate values, not quasi-governmental agency plans.

Fannie Mae’s goal in selling its properties is to get the highest possible price, even if it means hanging on to them longer, said Gabrielle Harrison, a vice president at the company.

“We want to treat that home as if it was your own, or as if you were living next door to it,” Harrison said. “You wouldn’t want that home to bring down your property value.”

Hello?  A seller who really wants to sell their home will price their home to the market.  If the home doesn’t sell, lowering the price is usually the trigger to getting action and a resulting property sale.  What does “You wouldn’t want that home to bring down your property value” mean?  That there’s some magic home value number that only next door neighbors and Fannie know?  Once again, buyers determine property values, not homeowners, even if they are Fannie Mae.