Skip to comments.Gov't considers turning foreclosures into rentals
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 ...
Section 8 reparations coming to a forclosed McMansion near you.
How the HEEL is that going to help falling home prices?
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.
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.
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.
Our Socialist in Chief, in action.
More government housing that will be destroyed in six months. Just look at the projects.........drug infested whore houses.
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.
Wonder if this will include overriding homeowner organizations and local zoning/ordinances that restrict rental properties.
The obvious solution where government intervention has failed is more government intervention.
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.
Section 8 reparations coming to a foreclosed McMansion near you.
I have a rental. Im 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. Ive seen it. The city of Tampa bought homes in my parents 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 Dads own back yard.) On the good side, you could buy drugs on the street corner. How convenient.
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
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.
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!!!!!!
For results of this decision, five years hence, see London news, today....................
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.
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.
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.
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.
Ok ruling elites, it is time to end your "Affirmative Action Presidency" experiment......
Seriously! The riots will be MUCH less harmful on the economy!
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.
“Shaniqua! Look at the size of this closet! You know how many shoes I can get in here?!!”
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.
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.
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!
What this really means is the administration is attempting to circumvent existing law covering the sell of these units.
Comrade, there was living space for 13 families in this one house.
“Also, can you imagine what some low class ghetto dwellers in your nice, middle class community will do for home values? I can. Ive 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.
lol... I’ve SEEN that movie!
And this falls under which enumerated power in the Constitution?
They foreclose on a house and then rent back to you?
“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.
Yeah. That’s the plan.................good luck with that..............
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.
The ‘Penumbra’ Clause...........Can’t you see it?...........it’s there, plain as night................
Hed love to, if he can get away with it.
I doubt many of the tenants could afford the local and state property taxes.
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.
How long before our government starts seizing homes and giving them to the “takers” in our society?
Zimbabwe comes to mind.
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.
Little ACORNs of HOPE in every neighborhood...
In this state, you have to be in arrears on taxes for four years, IIRC.............
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?
And I thought my landlord sucked...