I just read this article:
Freddie Mac to rent foreclosed properties
AMAZING! It's totally understandable that they would take this route. I showed a house on Tuesday that was only a couple of years old and theives had taken the stove and hood, oven and microwave, dishwasher and cabinets. It's unreal. When homes are looted the banks can't resell them with typical financing (ala FHA) unless they meet basic living standards. If they don't, they sell them at a discount to investors for cash, who either fix them up and rent them out or resell them.
The problem is investors who buy these homes face the same problems the bank is having. If they fix them up and they sit empty on the market waiting for a buyer they may get robbed again of everything the investor replaced. NOW, if the investor fixes up this type of property he will be competing with the government for renters. OH, and just so you know, these homes are NOT in ghetto neighborhoods, they once sold for around $400k.
SIGH :(
Look for rents to GO DOWN.
Freddie Mac stock - Ticker FRE - currently trading at 60 cents.
Fannie and Freddie combined own or guarantee about half of the $10.6 trillion in outstanding U.S. home loan debt.
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© Randy "Lazarus" McAtee |
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