Turning foreclosures into rentals
Federal officials hope
to launch a pilot program in early 2012 to convert government-owned
foreclosures into rental properties.
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- In coming weeks, federal policy makers could
roll out pilot programs to further test the concept of renting out
- There are two different types of programs that
officials are likely to consider. Under the first, the Federal
Housing Administration could sell properties in bulk to investors who
agree to rent them out.
- A more likely option for
Fannie Mae and Freddie Mac would be to set up pools of properties in which
third-party investors would take a stake. Investors could be
responsible for handling maintenance and day-to-day operation of the
rental pool, with Fannie and Freddie sharing in some of the returns.
- Read more about the pilot programs at http://blogs.wsj.com/developments/2012/01/12/six-questions-on-foreclosure-to-rental-programs/.