Skip to comments.U.S. Weighs Renting Out Foreclosed Homes
Posted on 08/09/2011 6:56:32 PM PDT by maggief
The Obama administration will announce plans Wednesday to seek investors' ideas for turning thousands of foreclosed properties owned by government-backed entities into rental homes, according to administration officials.
The move is intended to put a floor under declining home prices by creating a way to deal with hundreds of thousands of potential foreclosures in coming years.
Mortgage giants Fannie Mae and Freddie Mac sold a record 100,000 homes during the second quarter. Together with the Federal Housing Administration, the entities owned about 250,000 homes at the end of June, or around half of all unsold, repossessed properties. Another 830,000 homes backed by the entities are in some stage of foreclosure, according to Barclays Capital.
The Federal Housing Finance Agency, which regulates Fannie and Freddie, will issue the formal "request for information" with the administration to solicit proposals that shrink the glut of foreclosed properties weighing on the residential market.
One proposal would sell packages of hundreds or thousands of foreclosed properties in bulk to investors that agree to rent them out. That approach is preferred by the Department of Housing and Urban Development, which is taking back properties as defaults mount on loans backed by the FHA.
Another approach would allowlet investors enter joint ventures with Fannie or Freddie to invest in a pool of converted rental homes. A national property-management business would handle the day-to-day landlord responsibilities. Investors would pay for rehabbing and maintaining properties and would share revenue from monthly rental income and the ultimate sale of the property. Such a joint venture would be modeled on the Resolution Trust Corp., which sold failed banks' assets in the early 1990s.
(Excerpt) Read more at online.wsj.com ...
How convenient that it worked out this way.
Great...more Bammy stash. Is that where the maintenance and upkeep for these give-away houses will come from, too?
...”joint venture with Fannie Mae and Freddie Mac” and that’s where any plan falls apart like a cheap suit.
So which set of 0bama’s coneys will get first crack at these houses at rock bottom prices.
The gubmint owns houses? Doesn't sound constitutional to me.
Great. The new single family Project, right next door.
This is chilling.
Obama is a Pharoah who knew not Joseph.
And if you vote for me I promise you a home in every garage!
It is at least more honest than telling us we own our homes and then charging property tax ie rent to keep them.
I see two problems here. First, somehow you’d have to write this off via the banking sector as a total loss in some cases...you won’t get prime rental dollars to make up for the money owed on the house. The second problem is who would manage something like this? Neither Fannie Mae or Freddie Mac are designed to handle something like this. You need an organization that handles the money and fixes homes when necessary. I would predict that third entity has to be created out of thin air...to run something like this.
Does the banks have clear titles to all these properties. No investor will buy it unless this is cleared up. Guess fed will come up with a law to loosen this requirement or a shortcut (issue new fed titles that replace old title) thus immunize the banks screwup and investors risk of buying the houses. In other words, gov will interfere with the conventional property laws and screw everything up for the regular home owners.
‘seek investors’ ideas’-
And that’s supposed to mean something more than the faux headlines.???
“A national property-management business would handle the day-to-day landlord responsibilities. Investors would pay for rehabbing and maintaining properties and would share revenue from monthly rental income and the ultimate sale of the property.”
The potential for “unintended consequences” is mindboggling.
Just imagine how much the value of the properties could rise after they’ve been rented out to people that the government would favor. /S
Forget this considering the kind of people they would rent to. Just blow up your neighborhood and be done with it.
Various “projects” come to mind. You know the FDR federally finance high-rise apartment buildings that have become synonymous with slum projects. Cabrini-Green is a prime example.
...because centralized planning and meddling has been so helpful in every other area they’ve tried it.
What’s amazing is that living under FDR had to be much worse than this. Can you imagine? 4 massive landslides? Oy.
You have to give Baraq credit.
He may have been a screw-off student in college, but when
he got his Masters in “Operations” from the Chicago political mob, he learned well.