Should Government Turn Foreclosures into Rentals?
Friday, October 14, 2011
San Diego Union-Tribune -- Should unoccupied bank-owned homes held by the government convert to rentals?
That's one idea to address the nation's housing backlog, said HUD Assistant Secretary Mary J. Miller this week at the CFA (Chartered Financial Analyst) Institute this week.
... The Union-Tribune this week asked University of San Diego real estate professor Norm Miller on his thoughts about such a strategy, in an email. This is this week's Five on Friday Q&A.
Q: What are the pros about doing something like?
A: I think that one objective (not stated) that is achieved by renting housing and not selling it off is that the GSEs (government-sponsored enterprises Freddie Mac and Fannie Mae) don't have to write down the losses any more since they can delay the actual sale. This may save face for awhile. (Full Story)