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Foreclosures to Rentals...

By
Title Insurance with Title Junction, LLC

 

Did you know that the Federal Reserve estimates more than $100 billion worth of foreclosed properties will be converted into rental housing this year? Hoping by taking pressure off rising rents, creating more housing for low- and moderate income families, and possibly pushing up prices on unencumbered homes for sale. The fed said lenders could receive Community Reinvestment Act credit for providing housing to low-income and moderate-income families by converting foreclosures to rental. Typically, foreclosures must remain rental properties for a specific number of years, usually five, before they can be put back on the housing market.

What are your thoughts on this? Do you think making them rental properties will help or hurt our economy?

 

Posted by

Jennifer Ferri

Owner and Operator

Title Junction LLC

David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

I think that if investors buy these homes and make some improvements and/or keep people in their homes it's a plus. Will be interesting to see how it all works out . . .

Jul 05, 2012 12:32 AM
Erv Fleishman
Realty Associates - Boca Raton, FL
Luxury Prop Specialist Realty Associates

We need inventory. I do not necessarily think they will be converted to rentals. 

Besides, would you believe the Federal Reserve?

Jul 05, 2012 12:58 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

This was done over 30 years ago with the RTC - no big deal as the investors was the INCOME and they maintain the properties while many REO properties are not being maintained.

Jul 05, 2012 01:46 AM
Andrew Capelli
Troy, MI

Jennifer: I agree with Wallace- I think the best part of the program is that it will (hopefully) reduce urban blight.  If the homes are maintained and occupied, that will positively affect not only the homes' values, but the property values of the surrounding neighborhoods.  Increased values (and equity) should definitely have a good impact on the economy.  Nice post- Thanks for sharing!

Jul 09, 2012 01:44 AM