The woes in the market for North Shore Chicago Real Estate are affecting both small and large investors here and are being felt around the world. While many homeowners are facing the specter of foreclosure, the biggest names in mortgages are seeing their value plummet on the open market. Freddi Mac and Fanny Mae, the two largest companies in the industry for home loans, may have to receive help from the federal government to survive.

The companies are facing a rising tide of losses as more homeowners are unable to continue to pay their loans. The huge increase in foreclosures is leading to a drop in prices, making it nearly impossible for these companies to recoup their losses. Also, with the volume of foreclosures at record highs in many major markets around the US, it is next to impossible for these companies to sell all of their homes.

And so, the companies are paying. The stock value of Freddie Mac has been hit hard by a wave of selling. The stock has dropped by more than 50 percent in just a week, showing investors increasing preoccupation with the ability of the mortgage giant to be able to weather the storm.

The companies can expect to receive aid from the government, but lawmakers in Washington may wait too long to decide that Fannie and Freddie actually need help. According to the Treasury Secretary Henry Paulsen, both companies have enough working capital to survive the storm.

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This entry was posted on Friday, July 11th, 2008 at 11:49 am and is filed under Evanston Real Estate(t) . You can leave a response.