Wednesday, August 10, 2011

Your New Landlords, Fanny and Freddie?

Thinking out of the foreclosed box, the Obama administration is has a novel idea for easing the impact of it's 250,000 repossessed residential properties on the housing market. They're considering renting them out. They've asked for reactions from housing experts, Realtors, and the public -- and they've gotten an ear full. Here's a selection from the hundreds of reader comments that followed some online news clips on the idea:
….This will invariably become another entitlement program that creates its own constituency taxpayers can ill afford. Do you honestly believe the federal government is going to kick people out of these houses as renters quit even paying rent? Sell the houses, take the (taxpayer) loss, and move on.... they will take a loss in the short term but in the long term these distressed properties would become valuable assets which could be sold for profit or kept as rental income.....this will only lead to the "slumification of America" as Democrats will look to place Section #8 housing into residential/suburban neighborhoods --under the label of affordable housing.…these bulk sales would have to be done at very low prices to make it work and even then the rent prices probably would not cover expenses.....A bottom wont be made in the housing market until the supply demand equation reaches an equilibrium point. There is still an enormous supply of homes that no amount of government solutions will eliminate...
If approved, the program would most likely be tested out in states that have had the most foreclosures along with the highest demand for rentals such as Florida, Nevada, and Arizona. The deadline for responses is September 15.

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