Good money after bad?

Posted: January 11, 2012 in Uncategorized
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If the federal government wants seized properties rented out, why doesn’t it just … rent it out?

According to Business Insider, the Obama administration plans to sell government-owned foreclosures in bulk to investors as rentals.

BI reported that there are currently about a quarter of a million foreclosed properties on the books of Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) and millions more are coming.

“The foreclosure processing delays of last year created a mammoth backlog of properties yet to be processed, which are just now being re-started,” BI reported.

Suggestion: Appoint administrators to lease the property directly without going through the failed real estate investment system. Haven’t we learned anything in the past five years? House flippers take the value out of the system. And it falls apart. And then there are bailouts. And the bailouts push the people farther down because their access to capital is gone.

Business Insider

Relevant article from DU

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