Foreclosures May Become Rentals

There have been talks of this happening and now it looks like the Federal government is going to actually do it. In the next few months, Federal officials hope to launch a pilot program to convert government-owned foreclosures into rental properties. The program would sell foreclosed homes now owned by Fannie Mae and Freddie Mac to investors in bulk. The properties would then be converted into rentals.

This has been talked about since back in August, when the Federal Housing Finance Agency, the Treasury Department and the U.S. Department of Housing and Urban Development announced they were seeking suggestions on ways to dispose of repossessed homes now owned by Fannie Mae, Freddie Mac and the Federal Housing Administration.

In addition to getting the properties off the government’s books, officials are hoping putting the homes back into productive use will stabilize neighborhoods and housing values. Also, it is looking to expand the supply of rentals, which are increasingly in demand. As of right now Administration officials are still trying to iron out the program, stay tuned.

If you have any questions about foreclosures, please call or text Scott Groves at (818) 679-5188