We have avocated getting investors more involved in helping to stem the flood of foreclosed properties entering the market. After a dramatic fall in prices, we expect the market to stabilize more quickly with more investor participation in the market.
The Obama administration is very close to announcing a pilot program that would allow the US government to sell foreclosures in bulk to investors as rentals. There are currently a quarter of a million foreclosed properties on the books at Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) and one million more are coming out soon.
The Lender Processing Service recent reported late-stage mortgage delinquencies at close to two million. Investors who can raise large sums of cash (i.e., institutional investors) will be able to buy properties on a large scale. We think this will help reduce the potential glut of inventory from these newly foreclosed homes.
Large investors will be able to buy 50-500 properties in one single deal. These big investors would be able to finance more than $1 billion in these type of transactions. The reduction in fear of a large wholesale of new inventory blowing on the market and the amount of time for absorbtion could be eliminated under this new plan. We think this is a good thing for the US housing market.
The added benefit might be to have rental prices even out a bit. The rental market has heated up with all of the recent problems in the market place. As a result, rent prices have been increasing along with demand. The additional rental units from this plan might also stabilize rental prices and ease the potential for inflation, in our view.
As a local Relator, I am aware of the trends in the US market as well as in many of the communities in which I specialize. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.
For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550
http://MYsouthFLrealestate.com
Referrals are appreciated and welcomed.
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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