The Miami Herald showed a recent sale in Miami Beach to Fannie Mae. I took a look at the deal. Fannie Mae bought the Condo, pictured left, for $336,000 and it has a market value of $334,700. The Condo is 1,330 square feet. The previous owner, Franck from California, bought the Condo for $420,000 on July 26, 2005. When I took a closer look at the deal, I saw that Fannie Mae took possession with what they are calling A Warranty Deed in Lieu of Foreclosure. Actually, the amount Fannie bought it for was the amount of the first mortgage. There was a second mortgage (2005) in the amount of $42,000. Franck put $42,000 down. Both mortgages were with Countrywide.According to Miami Dade County records Franck bought yet another Condo, less than a month later, for $525,000. I am assuming it is the same Franck as the signatures on the mortgages matched. On this one he had $472,500 in mortgages. Again with Countrywide. So this guy from California, obviously a speculator, was holding $850,500 in Florida mortgages all from the same mortgage company. Curiously, there wasn’t a trace of foreclosure activity on his County Records.
Franck got bailed out, the mortgage company got bailed out... but with tens of thousands of foreclosures in Florida, how is Fannie Mae deciding which properties it will bailout? Why Franck, and not Joe or Jose, with or without the correct middle name? What rules are Fannie Mae following, to prioritize purchases: is it like the Lotto with balls spinning in the plastic bubble or, does it depend on who you know or whose campaign you gave to? Oh, one last question: if these were Countrywide loans, and Countrywide disappeared letting Angelo Mozillo walk away with a few hundred million, why wasn't this bailout-- with tax dollars-- of this condo funded by the bank that absorbed Countrywide: Bank of America? We own BAC, too. That's the company that owns Merrill Lynch that paid its bankers millions after it had taken bailout money.Here are portions of the records for this Fannie Mae deal:
Thank you Gimleteye for your help with this column!
4 comments:
Please clarify, the second mortgage he received was after the warranty deed in lieu of foreclosure was executed?
ALL FOUR MORTGAGES MENTIONED WERE AT THE TIME OF ORIGNIAL PURCHASE IN 2005.
I drive by that bldg (ugly condos) everyday. At night most of the lights are off, like no one's home. On my block in surfside, four homes are unoccupied. Flippers cant sell and renters are non-existent.
So...let's bailout the speculators! That's a good plan. Just like giving our local government bailout money. I am turning on these bailouts..
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