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player ready...The federal government announced on Wednesday the first phase of what could become a major program to help turn foreclosed homes into rental properties in hard-hit cities like Chicago.
Dubbed the REO Initiative, the Federal Housing Finance Agency said investors who are interested in participating in the program could now take steps to pre-qualify their eligibility for the pilot phase and future parts of the program. The agency said it it is looking at investors’ financial resources as well as their operational experience capability to manage properties in communities affected by the housing downturn.
In August, the FHFA put out a call for ideas on how to address the growing supply of foreclosed homes throughout the country, with the goal of assisting consumers as well as reducing the portfolio of foreclosed homes held by Fannie Mae, Freddie Mac and the Federal Housing Administration. The agency received more than 4,000 submissions.
The pool of assets for sale during the pilot phase will include rental properties, vacant properties and non-performing loans, primarily in hardest-hit areas.
“This is an important step toward increasing private investment in foreclosed properties to maximize value and stabilize communities,” said FHFA acting director Edward J. DeMarco in a statement.
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