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Gov't considers turning foreclosures into rentals
AP ^ | Aug 10, 1:18 PM EDT | By DEREK KRAVITZ

Posted on 08/10/2011 11:20:41 AM PDT by Red Badger

The Obama administration may turn thousands of government-owned foreclosures into rental properties to help boost falling home prices.

The Federal Housing Finance Agency said Wednesday it is seeking input from investors on how to rent roughly 250,000 homes owned by government-controlled mortgage companies Fannie Mae and Freddie Mac and the Federal Housing Administration. All of the homes are foreclosures.

The U.S. government rescued the two mortgage giants in September 2008 and has funded them since the financial crisis. Fannie and Freddie own or guarantee about half of the nation's mortgages and nearly all new mortgages.

Converting the homes into rentals may reduce "credit losses and help stabilize neighborhoods and home values," said Edward DeMarco, acting director of the Federal Housing Finance Agency, which oversees Fannie and Freddie.

Homes in foreclosure sell at a 20 percent discount on average, which can hurt prices of surrounding homes.

It also might meet the growing demand for rentals. Since the housing meltdown, nearly 3 million households have become renters. At least 3 million more are expected by 2015, according to census data analyzed by Harvard's Joint Center for Housing Studies and The Associated Press.

A federal "request for information" released Wednesday included an option for previous homeowners to rent out the homes or for current renters to lease to own. Private investors could also be allowed to oversee the conversions. Officials are also mulling whether to implement a program in metro areas hit hardest by foreclosures and in those with high demand for rental housing.

The homes include single-family homes and condominiums. The deadline for responses is Sept. 15.

(Excerpt) Read more at hosted.ap.org ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Front Page News; Government
KEYWORDS: barackalypsenow; bhoeconomy; economy; ghettohoods; hopeychangey; housing; obama; obamageddon; obamaville; rentalhousing; rentalregime; section8; slavery; thenewghetto; thirdworld
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1 posted on 08/10/2011 11:20:42 AM PDT by Red Badger
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To: Red Badger

Section 8 reparations coming to a forclosed McMansion near you.


2 posted on 08/10/2011 11:21:37 AM PDT by Tijeras_Slim
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To: Red Badger

How the HEEL is that going to help falling home prices?

COMMUNISM 101


3 posted on 08/10/2011 11:21:59 AM PDT by Reagan69 (First they came for Sarah Palin and conservatives said nothing...)
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To: Red Badger

Great, so now they want to take over the rental business and drive all the landlords into foreclosure as well.

They have to destroy the one market that was doing ok during this recession, these people are incredibly stupid.


4 posted on 08/10/2011 11:23:19 AM PDT by dila813
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To: Red Badger
Yes, and the 0bama renters - can we call them section O renters? - wil take such good care of the property.
5 posted on 08/10/2011 11:24:03 AM PDT by Noumenon (The only 'NO' a liberal understands is the one that arrives at muzzle velocity.)
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To: Red Badger

Oh... That’ll work. NOT!!!!
Has he ever been INSIDE Gub’ment subsidized housing?

Not to mention what it will do to the property values of all the OTHER homes in the area.


6 posted on 08/10/2011 11:24:06 AM PDT by tcrlaf (PREFRONTAL LOBOTOMISTS FOR OBAMA2012!)
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To: Tijeras_Slim

Exactly my thoughts. Next thing you know, we who pay taxes will be subsidizing their rent. Costa Rica is looking better and better with each passing day.


7 posted on 08/10/2011 11:24:18 AM PDT by tgusa (Gun control: deep breath, sight alignment, squeeze the trigger......)
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To: Red Badger

Our Socialist in Chief, in action.


8 posted on 08/10/2011 11:24:52 AM PDT by Sudetenland (There can be no freedom without God--What man gives, man can take away.)
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To: Red Badger

More government housing that will be destroyed in six months. Just look at the projects.........drug infested whore houses.


9 posted on 08/10/2011 11:26:49 AM PDT by RC2
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To: Red Badger

A gun has just been fired into the head of ALL homeowners heads, and is the death knell of the idea of even having private property.

Flush!!!


10 posted on 08/10/2011 11:27:21 AM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: Red Badger

Wonder if this will include overriding homeowner organizations and local zoning/ordinances that restrict rental properties.


11 posted on 08/10/2011 11:28:47 AM PDT by dila813
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To: Red Badger

The obvious solution where government intervention has failed is more government intervention.


12 posted on 08/10/2011 11:31:14 AM PDT by IamConservative (Do peeps that drive Smart Cars on freeways have a death wish? If not, they better have spare undies.)
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To: Red Badger

I’m not sure how to feel about this. On the surface, it almost seems like a good idea. I’d like to see more details, before I pass judgement. I don’t agree with much this administration does, but I’m not going to knee jerk this one. It has the potential to mitigate some of the loss to the taxpayers on those properties. I’m not saying they shouldn’t still try to sell them off, but while the process of being sold is going on, rent em out. What I’m afraid of with this bunch is the access to these properties go to those who would basically destroy the value of them, and potentially ruin the value of the surrounding properties.


13 posted on 08/10/2011 11:31:14 AM PDT by Carolina_Thor (It's always better to be thought a fool, than to open your mouth and remove all doubt.)
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To: Tijeras_Slim

“Section 8 reparations coming to a foreclosed McMansion near you.”
I have a rental. I’m already competing with all sorts of subsidized rental units. This will drive small rental owners out of the business. Also, can you imagine what some low class ghetto dwellers in your nice, middle class community will do for home values? I can. I’ve seen it. The city of Tampa bought homes in my parent’s neighborhood and moved in ghetto-dwellers. There had never been much crime. Suddenly, the old folks were being accosted in their yards and a 10 year old showed my 94 year old Dad a pistol and told him to “get the f*ch out of here.” (From my Dad’s own back yard.) On the good side, you could buy drugs on the street corner. How convenient.


14 posted on 08/10/2011 11:32:41 AM PDT by Gen.Blather
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To: Red Badger

Say hello to your new Section 8 neighbors - http://www.chicagonow.com/blogs/arresting-tales/2009/10/section-8-helping-the-poor-or-dispersing-urban-crime.html#more


15 posted on 08/10/2011 11:34:07 AM PDT by RightGeek (FUBO and the donkey you rode in on)
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To: Red Badger

Fill them with illegal Mexicans and/or Somali’s. Which the government did in our town starting about 1995. They turned a conservative region into a “Diverse” swamp.


16 posted on 08/10/2011 11:35:00 AM PDT by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: Red Badger

Ah, yes; after 27 years in the Real Estate industry, I have a vivid picture of the genius of the Zero administration doing anything constructive to ‘boost home prices’, and RENTALS doing it? THIS HAS TO BE ANOTHER BWANEY FWANK PWOJECT!!!!!!


17 posted on 08/10/2011 11:35:13 AM PDT by arrdon (Never underestimate the stupidity of the American voter.)
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To: Red Badger

Horrible idea.


18 posted on 08/10/2011 11:38:30 AM PDT by Girlene
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To: Carolina_Thor

For results of this decision, five years hence, see London news, today....................


19 posted on 08/10/2011 11:39:07 AM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Red Badger
Coming soon to a McMansion near you: the Beverly Hillbillies with crack and domestic violence.
20 posted on 08/10/2011 11:39:21 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Red Badger

The federal government ran out of real money a long time ago. The only funds left are the funny money created by Bernanke running the printing presses at the mint. All those funds are needed to pad the palms of his Wall Street pals.

Obama, Bernanke and Geithner are no longer players. They are “all in” in the poker game called the economy. They are now merely spectators waiting for the hand to end. It won’t until Obama is no longer president.

So now in order to continue his “social justice’ aka socialism, he will give the weeds free housing while ruining neighborhoods filled with people doing everything that they can to keep up their mortgage payments and meet all their other obligations.

If Obama can’t destroy America using one method, then he will use another even if it means doing it one house and one neighborhood at a time. It is impossible to make this stuff up.

Obama needs to be taken to task about the alleged long form birth certificate that he released. If it is a fraud then he should be impeached.


21 posted on 08/10/2011 11:42:02 AM PDT by Saltmeat
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To: Carolina_Thor

Can’t believe you would say that, what do you think happens to landlords when their rents are depressed due to oversupply in the Rental markets?

They go into foreclosure too. Then the government will have to bail them out too.


22 posted on 08/10/2011 11:42:04 AM PDT by dila813
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To: Red Badger

Let’s see.

They are going to increase the number of “rental” units in hopes of helping the housing market. Right. The number of rental units will be increased thus reducing the push to buy a home.

Guess this is going to help the housing market just like the new mileage requirements are going to help the auto industry.


23 posted on 08/10/2011 11:43:56 AM PDT by Nip (TANSTAAFL and BOHICA)
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To: Red Badger
Here is a crazy, insane idea, how about selling the damn houses ??????

Put out an open listing for local real estate brokers, and let whomever can get the highest bid, get the sale, the gov't gets money, the broker gets a commission.

It can help housing values, costs the gov nothing, and makes the most sense.

24 posted on 08/10/2011 11:49:54 AM PDT by Sonny M ("oderint dum metuant")
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To: Red Badger
Enough is enough!

Ok ruling elites, it is time to end your "Affirmative Action Presidency" experiment......

Seriously! The riots will be MUCH less harmful on the economy!

25 posted on 08/10/2011 11:49:58 AM PDT by Envisioning ( Call me a racist................, one more time......................)
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To: Carolina_Thor

What makes you think that they will pay their rent? And if they don’t who is going to pursue them? Certainly not the Democrat bureaucrats. They need the votes and this is the purpose of the insane plan. Fertilize the weeds and ignore the crop and then expect to make a harvest. This is the insane part.


26 posted on 08/10/2011 11:50:57 AM PDT by Saltmeat
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To: Tijeras_Slim

“Shaniqua! Look at the size of this closet! You know how many shoes I can get in here?!!”


27 posted on 08/10/2011 11:51:16 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: tgusa

They ARE subsidizing the rent.

There was an article not a month back to that effect. My above post is almost an exact quote from that article.


28 posted on 08/10/2011 11:52:15 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: dila813

That’s why I say I’d like to see more details. I obviously would not want to see the properties rented or used in such a way. That would decrease the value of the properties, or the properties surrounding. Nor would I like to see the gov’t price the rent so low they would kill rental property competition. Having said that, I also would hate to see the taxpayer remain on the hook for all these for one cent more than necessary considering the gov’t already owns them. Not sure how it could be implemented, and as I stated before I definitely don’t trust the agenda of this bunch. My point was primarily to find a way to lessen the burden on the taxpayer.


29 posted on 08/10/2011 11:52:39 AM PDT by Carolina_Thor (It's always better to be thought a fool, than to open your mouth and remove all doubt.)
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To: tgusa
FR Posting on Section 8 subsidies to the suburbs
30 posted on 08/10/2011 11:53:37 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter knows whom he's working for)
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To: Nip; Red Badger
The number of rental units will be increased thus reducing the push to buy a home.

Ahh, but NEXT year, O will buy votes by "selling" these "excess units" to the (subsidized) "disadvantaged" renters for $1 down, and a dollar a day for life, creating "instant owners". "Sales" will boom!

31 posted on 08/10/2011 11:53:47 AM PDT by ApplegateRanch ("Public service" does NOT mean servicing the people, like a bull among heifers.)
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To: Red Badger

What this really means is the administration is attempting to circumvent existing law covering the sell of these units.


32 posted on 08/10/2011 11:54:51 AM PDT by org.whodat (What does the Republican party stand for////??? absolutely nothing.)
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To: Opinionated Blowhard

“Comrade, there was living space for 13 families in this one house.”

33 posted on 08/10/2011 11:57:51 AM PDT by dfwgator
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To: Gen.Blather

“Also, can you imagine what some low class ghetto dwellers in your nice, middle class community will do for home values? I can. I’ve seen it.”

Oh yeah, I’ve seen it too. When the home next door is trashed and has diapers thrown all over the lawn, and cars coming and going at all hours, it certainly doesn’t enhance or stabilize real estate value. The other neighbors dump their homes and flee.


34 posted on 08/10/2011 11:58:28 AM PDT by BlatherNaut
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To: dfwgator

lol... I’ve SEEN that movie!


35 posted on 08/10/2011 12:00:50 PM PDT by tcrlaf (PREFRONTAL LOBOTOMISTS FOR OBAMA2012!)
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To: Red Badger

And this falls under which enumerated power in the Constitution?


36 posted on 08/10/2011 12:00:50 PM PDT by Larry - Moe and Curly (Loose lips sink ships.)
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To: Red Badger

They foreclose on a house and then rent back to you?


37 posted on 08/10/2011 12:02:18 PM PDT by Krodg
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To: ApplegateRanch

“Ahh, but NEXT year, O will buy votes by “selling” these “excess units” to the (subsidized) “disadvantaged” renters”

He’d love to, if he can get away with it.

The government has been privatizing military housing units to reduce costs.

Clearly taking on the role of landlord and “renting” foreclosed properties is just a maneuver to distribute more bennies at public expense to the liberals’ preferred groups.


38 posted on 08/10/2011 12:13:16 PM PDT by BlatherNaut
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To: Krodg

Yeah. That’s the plan.................good luck with that..............


39 posted on 08/10/2011 12:15:16 PM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Reagan69

That was my exact thought.

When the government supplies your food, medical care, housing, etc. It is communism plain and simple. I wonder how long before they start telling people where to live,what to eat, where to work.

Soviet Union in the US.


40 posted on 08/10/2011 12:15:37 PM PDT by jdietz (God is great, beer is good and people are crazy, (which is why guns are necessary))
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To: Larry - Moe and Curly

The ‘Penumbra’ Clause...........Can’t you see it?...........it’s there, plain as night................


41 posted on 08/10/2011 12:16:46 PM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: BlatherNaut; ApplegateRanch; Red Badger
“Ahh, but NEXT year, O will buy votes by “selling” these “excess units” to the (subsidized) “disadvantaged” renters”

He’d love to, if he can get away with it.

I doubt many of the tenants could afford the local and state property taxes.

42 posted on 08/10/2011 12:21:16 PM PDT by Paleo Conservative
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To: Red Badger

I say that THIS has been the plan since before the mortgage crash.
THIS was the plan when Fannie and Freddie were making all of those terrible loans they knew would not be repaid.
After all, it is just not fair that some people live in nicer neighborhoods than others and that some people will NEVER be able to own or even rent in certain neighborhoods.

You can be sure there will be NONE of these rental houses in the neighborhoods of ANY member of congress or the president.

Section 8 beachfront condos in Florida. Section 8 ski chalets in Colorado.


43 posted on 08/10/2011 12:22:25 PM PDT by a real Sheila (Proud master of 2 golden retrievers. Best dogs in the world.)
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To: Red Badger

How long before our government starts seizing homes and giving them to the “takers” in our society?

Zimbabwe comes to mind.


44 posted on 08/10/2011 12:23:54 PM PDT by a real Sheila (Proud master of 2 golden retrievers. Best dogs in the world.)
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To: a real Sheila

Obamugabe...............


45 posted on 08/10/2011 12:28:01 PM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Carolina_Thor

Once the government gets in there, even with the best of intentions, it is only a matter of time before it becomes another entitlement.

Everyone should have learned that a long time ago, no need to learn more.


46 posted on 08/10/2011 12:30:42 PM PDT by dila813
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To: Red Badger

Little ACORNs of HOPE in every neighborhood...


47 posted on 08/10/2011 12:32:05 PM PDT by GVnana (Have you worn your NOBAMA pin today?)
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To: Paleo Conservative

In this state, you have to be in arrears on taxes for four years, IIRC.............


48 posted on 08/10/2011 12:32:39 PM PDT by Red Badger ("Treason doth never prosper.... What's the reason? Why if it prosper, none dare call it treason.")
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To: Red Badger

Looks like they are creating a situation where uncle sugar owns the house, puts their voters in those houses, then pays their rent as well.
Another scary issue is that Freddie and Fannie own 1/2 of the existing mortgages and all of the new mortgages.
The marxists in dc would never politicize that now would they?


49 posted on 08/10/2011 12:36:38 PM PDT by Texas resident (Hunkered Down)
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To: Red Badger

And I thought my landlord sucked...


50 posted on 08/10/2011 12:37:23 PM PDT by Lucky9teen (Peace is that brief glorious moment in history when everybody stands around reloading.~Thomas Jeffer)
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