Skip to comments.U.S. moves to sell, rent 92,000 foreclosures Administration looks for buyers for U.S.-owned REOs
Posted on 08/10/2011 2:13:26 PM PDT by Fred
WASHINGTON (MarketWatch) Struggling to clear its inventory of foreclosed properties, the Obama administration said Wednesday its looking for investor ideas for converting more than 92,000 foreclosed properties owned by the U.S. government into rental units, a sign of the depths to which the U.S. housing market has sunk.
Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets and support neighborhood and home-price stability, Treasury Secretary Timothy Geithner said in a statement.
The Obama administration is working with the Federal Housing Finance Agency, the regulator for government-seized housing giants Fannie Mae and Freddie Mac, to come up with new options for selling single-family foreclosed properties owned by the two mortgage giants to buyers that would rent out the properties.
(Excerpt) Read more at marketwatch.com ...
Timmy should call 1-800-CHINA.
Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets and support neighborhood and home-price stability, Treasury Secretary Timothy Geithner said in a statement.”
Hahahaha...rent them on the cheap to the people who couldn’t afford them and then try to collect. SUCKER!
God should figure out a way to spare us from this jackasses agenda before Jan 2013.
Looks like just one more Federal boondoggle to me.
We can fill out form after form, mistakenly checking “African American” and “Less than $22,000 per year”.
I’ll have 4 vacation homes, and a home in every business city in the country within 4 months.
Turning them into Section 8...now THAT will speed things up.
Transparency in action.
This is bad news for everyone trying to sell a house, and everyone trying to preserve their neighborhood from low-lifes. I predict more hoodies in respectable neighborhoods, plus a rise in the number of chickens and goats feeding on front lawns.
Section 8 housing, coming to a neighborhood near you.
Good! Now we can be like England and have the government own land and houses for the “proles.”
We will now have “Council houses” just like good ole socialist England. Next, we will call our employers “governor” and drink tea.
I always said that would happen here in America eventually and it seems like it has come home to roost.
I just can’t wait for my neighborhood to become a slum full of “renters” along with their Mexican illegal relatives.
Improve real estate values? I can’t see that happening. I would rather they burn them to the ground rather than fill them with human trash.
They want to sell the houses at inflated prices with a deadbeat tenant used to not paying anything for housing. No way forget it. I’ll buy the properties that make economic sense and find my own tenant. when will these people face reality. when it kicks them in the butt.
They will be gov’t subsidized rentals.
Now, combine this with what I heard last week - that bank regulators have absolutely shut down any mortgages for real estate investors,
and you’ll see that they’ve shut anyone with money out of buying these properties, while they come out with this rental plan.
It’s a government (communist) takeover of the housing market.
Never thought I’d say this, but ‘Thank God for HOAs.’
They should give it away in a lottery.
Every $1 in taxes you paid last year gives you one chance in the lottery. So if you paid $100 in taxes, you get 100 chances; $10,000 = 10,000 chances. $0 = zero chances.
Since the taxpayers paid for it, it seems fair the taxpayers should get a shot at it.
Say, you sound like someone “in the business”.
Can you confirm or refute the shut down of investment mortgages?
Nah, what will happen is if the HOA has a problem with the section 8 renter, the gov't will step in and overrule the HOA.
You and me both. We live in the same part of Texas. Think I’ll pay the HOA dues early this year. :)
I have read that Fannie Mae and Freddie Mac foreclosures must be sent, by law.
Just an observation....but from all the houses in the US that are sitting empty and in this potential situation....there are another equal amount which are borderline with folks who overpaid and are forcing themselves to just continue on and hope for some recovery within two or three years. If this moves forward...I would expect that these people with a tea cup of hope...will finally give up and then dump their homes...so they can live in them comfortably as renters. Bluntly, we will actually have double the number of rent-potential homes.
We might all stand back and think about this...if it’s really a wise idea.
Ummm ...I have neighbors in my very respectable (for now) exurban neighborhood raising chickens in their BACK yard. No roosters, though, so you wouldn’t know it except for the fresh eggs they bring over to swap for veggies from our garden. Very pastoral.
“Rent” today. Signed over for free tomorrow.
Don’t bother to apply unless you are one of Obama’s “least among us”, or one of Holder’s people
Good point. Condo HOA’s in particular can limit owners from renting units.
Us lenders have have the HOA approved with with Fannie, Freddie, FHA or VA depending on the loan being used.
Some associations are in tough shape and can't be approved. Having too many units rented is one negative.
Obama Slumlord Ping
You might have something there.
Another thought I had was, how many new government agencies and government employees do you suppose will be established/hired in order to administer this renting of foreclosures deal? What kind of mandates will be coming from the government, that will then override the local and HOA rules and laws, lowering the standards and property values for thousands of additional neighborhoods?
My experience was a little different.
When I was in my previous home, the place next door went Section 8. In quick succession the house (which was larger than mine) had a Mexican family move in. Soon I discovered that all of their kids were on the free-lunch program (and his house is bigger than mine? How does that work???)
Next, Mom and Dad are smoking pot sitting in the front lawn. Next, there are six cars parked in the driveway, two with flat tires and all with Mexican license plates. At this point, there are 15+ people living in the place.
The final straw: goats and chickens. We got the hell out. That once nice neighborhood (in the 90’s) is now a barrio. Welcome to the future.
Yup, this will be a mondo political payoff as this guy says:
The ‘renter’ will be making the monthly payment with his or her’s welfare check or housing assistance funds.
As usual, we the people, will be picking up the tap and getting another of a long line of crap sandwiches shoved down our throats.
This latest scheme from, the community organizer in chief, Obama, is a big part of his re-election campaign.
Regarding these previously mortgaged homes, probably in Mortgage backed securities, sub-prime and toxic, can they be assumed to have no chain of title (no title, note or county property registrations and tax receipts paid papers)securities for laundering via govt to the public?
Should one think of them legally as “non-property or fiat mortgages now”. If so, these securities cannot be exposed by normal Mark to Market measures, thus exposing the real reduced value of the mortgages as Mortgage backed securities, their current instrumental form.
So is the govt is repackaging them with a new face (REITS) and potentially asking private investors (pensions?)to assume renamed, govt. cleansed, toxic mortgage bundles by this maneuver? This seems a real possibility.
It’s easy to kick out a home owner, but renters have rights out the wazoo. Cool, free rent and no one to tell them they can’t trash it out!
If this was happening in my neighborhood, it would be a real shame if that house was burnt to the ground.
true in business but strickly all cash buyer. dont want the bank/government telling me what to do
Times like this I am glad I live in a predominately Mormon neighborhood a block away from a Mormon Mega Church.
No where near the amount of foreclosures in my neighborhood than there are in the surrounding neighborhood. So this program shouldnt have the same effect on my neighborhood.
I just dont answer my door when there are people in clean white shirts and backpacks ring my doorbell on the weekend. Heck since the neighborhood is already mostly Mormon they dont even feel the need to preach to the choir so it has been months since any visit... LOL
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