Editor’s Note: It’s an election year and the incumbent President is working fast and furious to make his show-stats look more favorable, and quietly sweep the biggest US housing crisis ever – under Washington’s political rug in the process. How can the government then rid itself of hundreds of thousands of foreclosed properties it now owns, and make it appear like a housing market toward recovery? Their answer – rent them out. Still no justice for millions of Americans forced out on to the street by preditory lenders who cashed in long ago having re-sold those junk sub-prime portfolios. Welcome to the new world of ‘government rentals’. Apparrently, this passes for “good enough” these days.
February 28, 2012
The Federal Housing Finance Agency announced Monday that it will begin taking bids from investors to buy clusters of foreclosed properties and turn them into rentals.
The agency, which oversees government-backed mortgage giants Fannie Mae and Freddie Mac, said the pilot bulk sale program would focus initially on some of the country’s hardest-hit cities — Atlanta, Chicago, Las Vegas, Los Angeles and Phoenix, as well as parts of Florida.
Last summer, the FHFA, along with the Treasury Department and the Department of Housing and Urban Development, solicited outside input for creative ways to help answer a perplexing question: How could the government rid itself of the glut of foreclosed properties it now owns in a way that nudges the housing market toward recovery?
Fannie and Freddie have taken possession of hundreds of thousands of foreclosures throughout the country since the housing bust. But selling those homes at decent prices in an abysmal market has proven tough.