REO to Rental Program: Its Impact on the Housing Market

By The KCM Crew

There has been much talk about the government selling bulk foreclosures which will be converted into rentals. What will this actually mean to the housing market? For the answer to that question, we go directly to the 2/28/2012 Senate testimony of the person making the decisions on this subject: Edward J. DeMarco, Acting Director of the Federal Housing Finance Agency.

Have Any Foreclosures Been Sold in Bulk?

“Yesterday we announced the first transaction in our REO Initiative pilot program. This transaction includes approximately 2,500 properties, divided into 8 sub pools by geographic area.”

Will These Sales Be Limited to Certain Markets?

“The targeted Metropolitan Statistical Areas are likely no surprise to you because they represent hard-hit parts of the country: Las Vegas, Nevada; Phoenix, Arizona; various communities in Florida; Chicago, Illinois; Riverside and Los Angeles, California; and Atlanta, Georgia… Future transactions will also be targeted to these types of markets, where the supply of homes for sale is greater than the demand from homebuyers and where demand for rental housing is strong.”

Who Qualifies for These Sales?

“Investors will be able to submit applications to demonstrate their financial capacity, relevant market experience, and specific plans for purchasing pools of 6 foreclosed properties with the requirement to rent the purchased properties for a specified number of years.”

Will Most Foreclosures Be Sold This Way?

“Our primary goal will continue to be selling properties first to homebuyers who will use them as their primary residences or non-profits that include homes in mission-oriented activities. We also want to enhance the opportunity for smaller-scale investors to bid on properties, and obtain financing, should initial efforts to market the properties to owner-occupants fail.”

Will the Bulk Sales Program Lessen the Pressure on Home Prices?

“The number of properties available for sale by Fannie Mae and Freddie Mac represents only a fraction of the total supply that is depressing home values in certain affected markets.”

Bottom Line

Any plan that reduces the number of foreclosures will help home prices. However, this plan will not have a dramatic impact on the large number of homes that are currently in the foreclosure process.

If you are considering Relocating to Colorado Springs, Purchasing a Home for Sale in Colorado Springs, considering Selling a Home in Colorado Springs, or want more information on the Colorado Springs Real Estate Market, Contact your Colorado Springs Real Estate Expert, Mike MacGuire Today! Click Here to Check out my informational video if you are considering Selling a Home in Colorado Springs. Click Here to Check out my informational video if you are considering Purchasing a Home for Sale in Colorado Springs.

Comments

Post a Comment

Popular posts from this blog

The MacGuire Team & US Military

Image
Memorial Day is one day out of the year where we remember the men and women who have died for our country in the military. The MacGuire Team wants you to know that we also remember our military who are currently serving and their family. Because of this, we have provided the #1 Military Relocation Service in Colorado Springs . Moving can be stressful enough without having to add in other stressors like fast turn around times and another spouse who is left to handle everything. Here are just a few ways The MacGuire Team can make it easier with our  military relocation service . Colorado Springs Military Relocation Service Military families have special needs when they move. Distances are vast and time is of the essence. The MacGuire team understands that the 10-day window before reporting for duty at the new assignment is crucial to your relocation. Often, one spouse has the responsibility to choose a new home for the entire family. Or when selling, the remaining spouse must deal w
Read more

Mike McGuire's Real Estate Selling Strategy

Image
When selling your home, there are several ways you can accomplish it - but there are some ways that are better than others. When you hire the best real estate agent in Colorado Springs we use our 25 years of experience to not just sell your home, but to sell your home at the highest price possible in the shortest amount of time. Selling your home can be an overwhelming process, but our team is ready to assist you with ALL of the details. We have a very specific selling strategy that can give us the ability to make the most of your unique selling situation and sell your home as fast as possible. Here is how we accomplish this: Condition There are a few factors that go into selling your home: condition and price. The real estate market controls the price, but you can control the condition. Our team of agents can help you prepare your property for the market with advice that is time-tested. Our comprehensive listing enhancement services provide you with professional home stagi
Read more

Real Estate: We are NOT the Only Ones Saying You Should Buy

Image
By KCM Crew We have never hid our belief in homeownership. That does not mean we think EVERYONE should run out and buy a house. However, if a person or family is ready , willing and able to purchase a home, we believe that owning is much better than renting. And we believe that now is a great time to buy. We are not the only ones that think owning has massive benefits or that now is a sensational time to plunge into owning your own home.  Here are a few others: Benefits of Owning Joint Center for Housing Studies, Harvard University “Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord…Having to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings.” The Federal Reserve “Renters have much lower median and mean net worth than homeowners in any survey year.” Benefits of Buying Now Trulia “Buying costs less than renting in all 100 large U.S. metr
Read more