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Government Set to Sell Foreclosures in Bulk
CNBC ^

Posted on 01/09/2012 2:35:37 PM PST by HereInTheHeartland

Edited on 01/10/2012 5:17:40 AM PST by Admin Moderator. [history]

The Obama administration, in conjunction with federal regulators and led by the overseer of Fannie Mae and Freddie Mac, is very close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals, according to administration officials.

There currently are about a quarter of a million foreclosed properties on the books of Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA), and millions more are coming.

The foreclosure processing delays of last year created a mammoth backlog of properties yet to be processed, which are just now being re-started. One of the initiatives of this program is for the federal government to be in the position to mitigate and manage any new wave of foreclosures, sources say.

Late-stage delinquencies still in the pipeline number close to two million, according to a new report from Lender Processing Services. Foreclosure starts outnumber foreclosure sales by two to one and "the trend toward fewer loans becoming delinquent, which dominated 2010 and the first quarter of 2011, appears to have halted," according to LPS.

Knowing this all too well, the Treasury Department, Federal Reserve, HUD, FDIC, Fannie Mae and Freddie Mac, with their conservator, the Federal Housing Finance Agency (FHFA) at the helm, are engaged in a collaborative effort to face this new wave of foreclosures head on and figure out a way to keep these properties from sitting on the books of the government and sitting empty in the nation's neighborhoods.

As the Federal Reserve alluded to in its white paper on housing last week, "A government-facilitated REO-to-rental program has the potential to help the housing market and improve loss recoveries on reo portfolios." REO's (Real Estate Owned) are bank-owned properties, or, in this case, properties owned by the government-sponsored enterprises and the FHA. Three Fed governors pushed for similar plans in speeches last week, as well...

Excerpt...read more at cnbc.com

Comment: This seems like a really bad idea to me. Talk about crony capitalism. Individual buyers will not be able to from buy these properties.


TOPICS: Business/Economy; News/Current Events
KEYWORDS: bhoeconomy; bhohousing; fanniemae; fha; forclosure; freddiemac; realestate

1 posted on 01/09/2012 2:35:46 PM PST by HereInTheHeartland
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To: HereInTheHeartland
These properties will be shoveled to big name real estate investors.
Those of us who might want to invest in a property or two will be shut out.

We as taxpayers will be subsidizing well connected investors, again.

2 posted on 01/09/2012 2:38:31 PM PST by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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To: HereInTheHeartland
Seems obummer and crew are floating another illegal act as a trial balloon. This is a violation of several laws.
3 posted on 01/09/2012 2:42:46 PM PST by org.whodat (What is the difference in Newt's, Perry's and Willard's positions on Amnesty.)
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To: HereInTheHeartland

We will soon be making our Health Insurance payment to one place (Obamacare). Looks like home renters will be making their rent payment to 1 giant real estate company (Democrat, of course).


4 posted on 01/09/2012 2:43:47 PM PST by tennmountainman
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To: HereInTheHeartland
Yes, this is a big change from the property auctions of the S&L foreclosures / Resolution Trust Corporation era. I went to a few of those auctions and most of the houses were small, old and in very poor repair.

I'm guessing that this time around (due to idiotic lending policies) the houses are newer, larger and more worthy of investment... therefore the peasants aren't allowed to participate.

5 posted on 01/09/2012 2:46:07 PM PST by Charles Martel (Endeavor to persevere...)
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To: HereInTheHeartland; Admin Moderator

Why didn’t you post the article? Why did you post your comments where the article goes?


6 posted on 01/09/2012 2:46:47 PM PST by Responsibility2nd (NO LIBS! This means liberals AND libertarians (same thing) NO LIBS!)
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To: HereInTheHeartland

7 posted on 01/09/2012 2:48:16 PM PST by dfwgator
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To: HereInTheHeartland

It does seem likely. An investment trust will buy a few thousand properties for pennies on the dollar and be able to sit on them forever.


8 posted on 01/09/2012 2:51:30 PM PST by count-your-change (You don't have to be brilliant, not being stupid is enough.)
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At Least You Can Count On FR

The Best Conservative Site On The Web


Click The Pic To Donate

9 posted on 01/09/2012 2:59:18 PM PST by DJ MacWoW (America! The wolves are here! What will you do?)
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To: HereInTheHeartland

Crony capitalism? Probably. Of course, how did they end up owning all those foreclosures in the first place?


10 posted on 01/09/2012 3:08:48 PM PST by yup2394871293
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To: dfwgator
It is that obvious, although maybe the uniforms aren't quite as cool.


11 posted on 01/09/2012 3:09:10 PM PST by Gil4 (Sometimes it's not low self-esteem - it's just accurate self-assessment.)
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To: HereInTheHeartland
Government Set to Sell Foreclosures in Bulk

Who'll give me a hundred dollars for Detroit?
One hundred dollar ... one hundred dollars
fifty... fifty...
OK, who will give a buck for the entire city...

12 posted on 01/09/2012 3:09:26 PM PST by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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To: KarlInOhio
OK, who will give a buck for the entire city...


13 posted on 01/09/2012 3:11:14 PM PST by dfwgator
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To: dfwgator

Selected portions of the city of Detriot are available for $1.


14 posted on 01/09/2012 3:13:56 PM PST by Rebelbase
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To: HereInTheHeartland

A Huge Housing Bargain - But Not for YOU
http://www.thestreet.com/story/11224917/a-huge-housing-bargain—but-not-for-you.html

... from August.
This has been in planning for a while.
It is an outrage.


15 posted on 01/09/2012 3:16:18 PM PST by Lorianne
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To: HereInTheHeartland

By the way. No one cares.
I’ve been talking and blogging about this for months and the response is a big shrug.

Bet you don’t get many responses to this.

People won’t wake up until we are all serfs, if then.


16 posted on 01/09/2012 3:22:10 PM PST by Lorianne
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To: HereInTheHeartland

Makes you wonder if he’s trying to raise another slush fund to buy votes with.


17 posted on 01/09/2012 3:27:05 PM PST by yup2394871293
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To: Lorianne

Looks like that “hope and change” was only for the 1%.


18 posted on 01/09/2012 3:29:26 PM PST by alamogal
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To: Responsibility2nd; Admin Moderator

“Why didn’t you post the article? Why did you post your comments where the article goes?”

I have posted exactly 2 threads in the 7 years I have been here; so I am not the expert on how to do it.
Please change if needed


19 posted on 01/09/2012 3:34:15 PM PST by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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To: HereInTheHeartland

Crony Capitalism is a nice way of saying outright theft and corruption.


20 posted on 01/09/2012 3:35:45 PM PST by Venturer
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To: Venturer
Insider deals for the well connected and political donors. This is the kind of crap that quite a few people could agree on, no matter what the party or degree on the political spectrum.

Reagan had the only answer. Shrink government; and the money just isn't there to pass to one’s political cronies.

This is the kind of stuff Palin could have leveraged big time had she run

21 posted on 01/09/2012 3:42:32 PM PST by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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bttt


22 posted on 01/09/2012 7:50:44 PM PST by Matchett-PI ("One party will generally represent the envied, the other the envious. Guess which ones." ~GagdadBob)
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To: Lorianne

I looked at foreclosures for over a year before I finally found an affordable nonforeclosure. I subscribe to Fanny and Freddie listings and still get their updates. When I would find a new listing that I might be interested in I would go to the County Assessor’s office and find out how much Fannie/Freddie paid for it. I found a fairly nice older home in a neighborhood I liked and got very excited when I saw that Fannie acquired it for $103K. I happened to have that ammount in my bank so I talked to neighbors etc and etc. No one had lived in the house for 3 years and animals had gained entrance, which meant lots of work. Anyway, Fannie put the house up for sale for $193K! Several months later it is still on the market but the price goes down every once in a while.

Long and short of it is they could have sold this house to me 6 months ago but instead it will probably go to one of these investor consortiums for $40K or so and become a rental. This is our government at work, making wise use of tax payer dollars as usual.


23 posted on 01/09/2012 11:58:14 PM PST by tinamina
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To: HereInTheHeartland
More of the Chicago way?
24 posted on 01/10/2012 5:08:02 AM PST by 2001convSVT (Going Galt as fast as I can.)
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To: HereInTheHeartland
Excellent article and exposure of the way this administration runs whatever they can get their hands on.

Obama, Barney Frank et al paying off their buddies and making it even more difficult for ordinary citizens to own their own homes.

As was mentioned already, these homes that could be sold for what was paid for them will be drastically discounted so there will be many more rentals occupied by people that could have bought the homes.

Gotta keep close control of the people and pay off your buddies if the Marxist state is to be implemented.

25 posted on 01/10/2012 5:30:44 AM PST by Syncro (Sarah Palin, the unofficial Tea Party candidate for president--Virtual Jerusalem)
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To: tinamina

Yep, I’m in the exact same position.

It’s a racket.


26 posted on 01/10/2012 8:14:38 AM PST by Lorianne
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