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.
(snip)
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 ...
I agree with you 100%.
Would you vote against your landlord?
Ghetto Redistribution—sending the inner city to your neighborhood.
Death of The Suburbs
Right, what better way to get the meth cookers out into suburbia where they can cause the maximum damage to what’s left of society?
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.
And like everything else, it will never go away.
Lets say that you are an investor in single family rental property, and the government just announces that they are going to raise your taxes so that they can move in and compete with you using your profits to underwrite the usual bureaucracy that will [mis]manage the growing rental real-estate portfolio that the government will amass.
It is no different if the mob moved into your neighborhood and demanded that a percentage of your rents are diverted to them running rental properties across the street offering lower subsidized rents to undesirables who will drive down market values.
Years ago, I came up with the theory that the best house to buy was in a neighborhood where the bathrooms equaled the number of bedrooms. Generally speaking, to afford that home required two incomes, or one real good professional income. In the event one or more adults in that household developed bad habits like drugs, adultery or gambling, the family couldn't afford to stay there and would be compelled by market forces to move. It was a self-cleansing ecosystem.
With the government getting into the rental property business, they will bring in the dregs of society and instead of evicting the miscreants that tear the property up and make the neighborhood a regular stop for police and SWAT teams, you get to watch your investment portfolio plummet - not much unlike we are watching stocks and bonds fall.
Yeah. I don’t see how this could go wrong. [/sarc]
Some bureaucracy that does not yet exist. Forming this agency will create jobs, don't you see?
Then there is the issue of renters that trash the place, etc. The government lacks the interest to maintain the value of the property.
This SAYS that investors would buy the properties and be responsible for upkeep and a “nationwide” entity would act as landlord. First of all, you’re right. That will be a new government agency.
Second, who will the investors be? I’d bet my last dollar it’ll be the same people who foreclosed on the properties. Chase, Wells Fargo, BOA....and the prices will be dirt cheap.
These properties were already paid for by TARP. Now the banks will get them back for pennies on the dollar then rent them out.
If this is such a good idea why not let the people living in them now deed them back then start paying rent. I’ve got a house they can have if they want it. And I’ll rent it back from them for half of what my payment is.
Crack houses, meth houses, prostitution. All paid for by our taxes. Great.
It means who agrees with what we ARE going to do and will support our social programs and make some stash on the way.
How about just putting the damn things up for auction like they are supposed to?
Soon HOA's all over America will start burning down fore-closed properties to save their own property values.
Next step will be that the Goobermint decides who lives where (and they take the great homes due to their importance to society).
Barry’s plan is coming together. Socialism/Communism here we come!
Section 8 on super steroids.
And when they don't pay the rent, sell the appliances, the copper wire and whatever else they can get their hands on they will go looking for the next handout.
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