Believe it or not, the current home loan crisis is producing some very specific results that would make the founders of our country turn over in their graves. As more and more mortgages go into foreclosure, the number of loans guaranteed by the federal government grows as well. This has created something of a unique situation.

Essentially, the number of homes owned by the government is rising. In November 2009, for example, around 40 percent of all purchases of pre-owned homes were done so with loans that were guaranteed by the FHA. This is a dangerous number when combined with the trends in foreclosures.

As of the end of September, for example, there were 72,000 plus homes for sale by Fannie Mae that had been foreclosed. This comes after a total of more than 98,000 homes that Fannie Mae acquired during the first three quarters of that year. While Fannie has sold many homes, it still has a large number for sale.

The numbers for Freddie Mac are similar. The foreclosure inventory has risen nearly 50 percent, up to over 41,000 units as of September.

The default rate for homes guaranteed by Fannie Mae has been rising, too. Currently, it’s at about five percent. This means that one out of every 20 loans guaranteed by Fannie Mae is going into default. Those are staggering numbers.

Ultimately, these numbers reflect a growing pool of homes owned by the Federal government.

The goal, of course, is to get these homes into the hands of buyers. If the economy turns around, more and more of these government-owned foreclosed homes will go back into the market. In the meantime, however, more and more home loans fail and the holdings of the government grow.

Still, Fannie and Freddie are taking steps to try to speed up sales of foreclosed homes owned by the government. For example, they can now accept purchase offers on repossessed homes without having to notify the loan servicer. This helps to get rid of repossessed homes in a much quicker fashion, and to help buyers into those homes.

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