The Wall Street Journal is reporting that the federal government is considering renting foreclosed homes instead of selling them right away. The Obama administration said this would prevent home prices from falling further. Rental rates are rising across the country as real estate prices fall. Lenders would be able to cover the cost of holding onto the properties until the market stabilizes and prices rebound. Federal Reserve Chairman Ben Bernanke said in testimony to Congress that removing some future foreclosures from the market is a plan worth looking at. Housing analysts at Credit Suisse said that just by reducing Fannie Mae and Freddie Mac’s foreclosed property sales from its current rate of 50,000 each month to 30,000 could lessen total distressed sales by one-third and help avoid a further 3 percent to 5 percent decline in home prices.
Will this be done? I highly doubt the government will rent properties in Scottsdale AZ to any large extent. The majority of Scottsdale homes that are foreclosed have a year or more of deferred maintenance, many need paint, carpet and other repairs. Most are missing the refrigerator, washer and dryer. In order to rent out most foreclosures, the bank would have to make significant repairs. I can see the government renting a few select properties, but it is highly doubtful this will occur on any large scale. What do you think?? Leave a comment below.
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Realtor | Former Attorney
The Brodeur Luxury Group | Realty Executives
21040 N. Pima Road, Scottsdale, AZ 85255
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