This article from DSNwes.com mentions that Carrington Holding Company LLC will fund the purchase of up to $450M of distressed single family homes across the country. Carrington currently manages over 3,000 single-family rental homes under Fannie Mae’s Tenant-in-Place and Deed-for-Lease programs. The Federal Housing Finance Agency (FHFA) has said it is pursuing potential ideas for REO-to-rental pilot programs “with a sense of urgency,” but two California firms don’t plan to wait on the government’s involvement to get a large-scale REO rental venture off the ground.
On the surface, this seems to be a good way to lighten the backlog of foreclosed properties and shorten the length of time that it will take for the housing market to recover. However, I am concerned with the effect this might have on certain neighborhoods. If they were to buy blocks of homes in a certain subdivision, the overall effect would be a dcline in value of the homes.
I am especially concerned that FHA is looking to get involved in this. More government involvement in the housing industry spells disaster to me!
Read the whole article here http://bit.ly/y76eNY