dpnewell wrote:Wow, I've been wrong about Obama all this time. Just realized that I'm under his cone of protection, and he gave me a big old chunk of cheese.
See, in June, the wife and I bought a very nice foreclosed home in NC for 40% of market value (about the price of a luxury car). All these months I thought we had bought it from Wells Fargo, the mortgage holder. I was going through the closing papers, and to my surprise, we actually bought this place from Freddie Mac (Federal Home Loan Mortage Corp.). Did some more research, and found out that Freddie Mac bought the home from Wells Fargo in June '11, then turned around and sold it to us in June '12 at a $50k loss.
Just wanted to thank Obama, all you hard working tax payers, and of course, your children and grandchildren for my huge chunk of cheese. Much appreciated. Now get back to work, and pay your taxes.
You sure Wells wasn't just managing the mortgage for Freddie?
If so, all that the transaction did was does is put the loss on Freddie's books, not the bank's. Then, Wells' balance sheet looks "sound" per government analysis and banking rules by Fed and Treasury. Either way there was a loss due to relatively sudden, massive depreciation. If banks took the full hit, it would have to be taken over.
(I am certain you are not the only one here who has benefited by this recession.)