The Wall Street Journal is reporting on a possible program to have the Federal Housing Administration, Fannie Mae and Freddie Mac get rid of foreclosed properties by selling them to investors who agree to make the homes into rentals or finding investors to manage properties and share profits.
One proposal for the FHA , the Journal said, is to "sell properties in bulk to investors who agree to rent them out. Bulk sales have been rare largely because investors tend to demand deep discounts that sellers haven’t been willing to accept."
For Fannie and Freddie, the paper said, a more likely deal would have investor pools. The investors would manage the properties, but not own them outright. The agencies would share in the profits.
"Fannie and Freddie held around 180,000 homes at the end of September, down from around 235,000 one year earlier. The FHA held around 35,000 homes at the end of November, down from 55,000 one year earlier," the Journal's Nick Timiraos wrote.
