The foreclosure crisis has brought with it areas of devastated home values and vacant properties that no one wants, even for rental properties. As part of the foreclosure cleanup efforts the Federal Housing Finance Agency (FHFA) is inviting private investors to purchase groups of foreclosures in some of the nation’s hardest hit areas.
Sold To The Highest Bidder
Many foreclosed Fannie, Freddie and FHA homes will be up for grabs in the next several weeks as investors have a unique chance to purchase properties in bulk. This FHFA pilot program is offering the sale of pools of rental properties, vacant properties and properties with non-performing loans to the highest bidder.
The idea is to assess whether there is any private investor interest in these type of properties, in hopes of highlighting some commonalities that may be important for other foreclosure markets. If the program can shed some light on which properties may be considered, and ultimately purchased, by investors then additional measures can be taken to begin market stabilization and community improvement. FHFA Director, Edward DeMarco said in a statement, “This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities.”