Jan. 18, 2012

Government wants to turn foreclosures into rentals.

Government officials want to start a trial program to sell the homes that they own in bulk to investors who will turn them into rentals. That means Fannie Mae, Freddie Mac, and FHA homes in selected markets around the country. Their hopes are that getting these homes off the government's books, minimizing the losses and putting people back in them will help stabilize neighborhoods as well as housing values.

Fannie and Freddie combined have about 215,000 homes with more coming into foreclosure every day. This program could help get some of those homes lived in again and even help stabilize the housing market as there will not be so many distressed sales dragging down property values. Since rates are beginning to rise in many parts of the country this may help stabilize the rental market as well.

This program will probably take place in selected markets where there are large numbers of foreclosures. Reading between the lines I don't think this will have much effect here in Bellingham.

Posted in General, Helpful Topics
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