Government Seeks To Turn Foreclosed Homes Into Rental Properties
The Obama administration, along with the Federal Housing Administration, are looking for ways to entice investors back to the housing market.
The Obama administration, along with the Federal Housing Administration, is using a public forum to gather ideas for clearing out the nation’s stock of foreclosed homes and revive the housing market. Currently, banks price these foreclosures at rock-bottom prices to get rid of them, depressing prices for the whole market. The most prominent idea is to turn foreclosed homes into rental properties. Nicolas Retsinas, head of the Joint Center for Housing Studies at Harvard, says government entities like Fannie Mae and Freddie Mac are looking for ways to entice investors who will to turn the foreclosures into rentals: