A pilot program to sell government owned foreclosures in mass quantities could be in the works from the Obama administration. With more than 250,000 properties on the books of Fannie Mae, Freddie Mac, and the Federal Housing Administration the federal government is getting anxious about what to do with all of the homes. One idea could be to sell off blocks of properties to private investors who would in turn rent them out to those in need of housing.
This drastic action could cause the major banks in the United States to write off up to 50% more properties than they already have put into foreclosure. While the banks may take a hit upfront, this kind of program would have the potential to help start a recovery in the housing sector, which would in turn have benefits for the economy as a whole.
Eric Marvin, CFP®, CRPC®
JPT011212-091
