Landlords Have a NEW Competitor - THE NEW FREDDIE MAC RENT BACK PROGRAM

By
Real Estate Broker/Owner with Lazarus Realty

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.

 

Lazarus Realty
Lazarus

Direct:
Fax:

559.301.1647
559.438.7475

1319 W Bullard #4 -- Fresno CA -- 93711

© Randy "Lazarus" McAtee

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Rainmaker
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Tom Ski
BeFirst Media Group - Lakeside, MT
Social Media Marketing, Online Radio

thats is good idea and my be it will take some of the burden off the bail out program and help get things heading in a positive direction.

Jan 30, 2009 05:05 AM #1
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Rainmaker
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Randy "Lazarus" McAtee

Owner/Broker, Lazarus Realty, Fresno California
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