Investor demand high in US foreclosure-to-rental pilot

A pilot program to sell off U.S. government-owned foreclosed properties for use as rentals has drawn “robust” investor demand, a housing regulator said on Tuesday. The Federal Housing Finance Agency, which oversees mortgage giants Fannie Mae and Freddie Mac, wants to use the program to shrink the excess supply of repossessed homes weighing on the housing market. In February, the FHFA launched the pilot program to pool nearly 2,500 single-family homes foreclosed homes held by government-controlled Fannie Mae, with the aim to sell them to investors in bulk, who could then rent them out. The initiative is part of the Obama administration’s goal to put a floor under falling home values. The 2,500 properties are located in areas across the country, including Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix and parts of Florida.

Reuters

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