Author: Elliot Schlissel
Government Turning a Quarter Million Foreclosed Homes Into Rentals
The President is considering turning a quarter of a million homes taken over by government controlled agencies into rentals. Putting these homes on the market for sale will only further depress the real estate market. The Federal Housing Finance Agency would like to put 250,000 homes that are owned by Fannie Mae, Freddie Mac and the Federal Housing Administration on the market to be rented. These homes have been obtained by government agencies pursuant to foreclosure proceedings. Edward DeMarco, who is currently the acting director of the Federal Housing Agency, has stated that “renting these homes instead of selling them in foreclosure may reduce credit losses and help stabilize neighborhoods and home value.” It is estimated that homes placed on the market for sale in foreclosure sell for 20% less than their actual value.
Foreclosure Crisis Creates Demand In Rental Market
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