Uncle Sam wants you to rent out its foreclosed homes

Oh Boy, here we go again.

 We’re from the government and we’re here to help!

Can anyone read this and not see a nightmare of bureauocracy, red tape, mismanagement, and major headaches about to happen.   Not only does it only address a “small percentage” of the homes they are holding but the bidder has to bid on all the properties so we know the little guys are out of it only the big hedge and pension funds are going to be able to “compete” and the government doesn’t even say to what extent they are going to tie their hands as to how long they have to hold them and rent them out….

I hate to sound negative but this just reeks of sound bites – look we’re doing something arm flailing and lipsmacking that’s nothing more than the proverbial pig with lipstick.  If the government wants to positively impact the economy and unemployment they need to let the local markets work the inventory out naturally.  Sell them one at a time to local investors who will have a vested interest – make money, improve the neighborhood and create jobs (contractors, plumbers, electricians, roofers, realtors, landscapers, property management, etc).  Why is it so hard to figure out?

———-

NEW YORK (CNNMoney) — Want to become a landlord in one of the nation’s hardest-hit foreclosure neighborhoods? Well, Uncle Sam has a deal for you.

Fannie Mae (FNMA, Fortune 500) will offer up nearly 2,500 distressed properties in eight locations to investors who are willing to buy them in bulk and rent them out for a set number of years.

The properties, which are located in Atlanta, Phoenix, Las Vegas, Los Angeles/Riverside, and three Florida regions, include all types of housing units, from single-family homes to co-op apartment buildings.

“This is another important milestone in our initiative designed to reduce taxpayer losses, stabilize neighborhoods and home values, shift to more private management of properties, and reduce the supply of REO properties in the marketplace,” said Edward J. DeMarco, the acting director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae.

The sales, which will cover a small fraction of the more than 180,000 properties Fannie and Freddie Mac (FMCC, Fortune 500) hold, will be open to qualified buyers under strict guidelines.

Most of the properties already house tenants and buyers will be required to continue to rent out the properties to them for as long as their leases last. Investors will also be required to rent the properties out for a specified number of years. The exact number of years has yet to be disclosed.

Investors must post security deposits in order to bid and also must prove that they are financially stable, have property management experience and have strong ties to the local community, such as a history of working with local development organizations.

FHFA said that bidders must purchase all of the homes that are for sale in a given metro area. In Atlanta, that’s as many as 572, while in Chicago it’s 99.

Despite the fact that the strict requirements could limit the number of applicants seeking to invest in the properties, the government agencies have said there is strong interest in the program. FHFA said it has received more than 4,000 responses to a request for public input on how best to dispose of the vast number of homes Fannie and Freddie Mac (FMCC, Fortune 500) have acquired from borrowers who defaulted on their loans.

Read the full story here.

Larry – In Deed

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