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?
COMMUNISM 101
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.
Flush!!!
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. 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.
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!!!!!!
Horrible idea.
For results of this decision, five years hence, see London news, today....................
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