Skip to comments.Government Set to Sell Foreclosures in Bulk
Posted on 01/09/2012 2:35:37 PM PST by HereInTheHeartlandEdited 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.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.
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
We as taxpayers will be subsidizing well connected investors, again.
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).
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.
Why didn’t you post the article? Why did you post your comments where the article goes?
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.
Crony capitalism? Probably. Of course, how did they end up owning all those foreclosures in the first place?
Who'll give me a hundred dollars for Detroit?
One hundred dollar ... one hundred dollars
OK, who will give a buck for the entire city...
Selected portions of the city of Detriot are available for $1.
A Huge Housing Bargain - But Not for YOU
... from August.
This has been in planning for a while.
It is an outrage.
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.
Makes you wonder if he’s trying to raise another slush fund to buy votes with.
Looks like that “hope and change” was only for the 1%.
“Why didnt 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
Crony Capitalism is a nice way of saying outright theft and corruption.
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
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.
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.
Yep, I’m in the exact same position.
It’s a racket.