Fannie, Freddie Regulator: Investors Can Pre-Qualify To Bid On Foreclosed Homes

WASHINGTON, Feb 1 (Reuters) - The regulator for housing finance firms Fannie Mae and Freddie Mac said on Wednesday investors could now sign up to pre-qualify to bid on foreclosed properties held by the government-controlled firms.

In a plan to help the struggling U.S. housing market by clearing a backlog of foreclosed properties, investors could purchase homes to convert them into rental units under the program.

The Federal Housing Finance Agency said it will announce the first transaction during a pilot phase of the so-called REO initiative in the "near term." (Reporting by Jason Lange and Margaret Chadbourn)

Comments

[carolgregor]

12:11 PM on 02/14/2012

These homes, a part of the Mers mess have compromised titles. The homeowner's probably have a deed that is not compromised. These homes might be best served by going back to the original owner at a new market price. Why are we continuing to ignore the horrible abuse of the homeowner's involved? The governments corrupt Frannie and Freddie were created to help people not act like greedy commercial lenders that caused this fraud against homeowners.

[Bob Duryea]

10:17 AM on 02/02/2012

Speculators raised the values of homes through some faulty appraisals (MERS) increasing profits for investors in mortgage backed securities. Of which those banks sold to other investors at old appraised values to protect investors only. Bundled MBS were insured from default on those over-inflated real estate properties protecting investors. Legislation passed to protect banks and investors with the homeowner falsely led to believe in the values of their homes now underwater when the REAL value was uncovered and how flawed regulation system of valuation of real estate was by jacking up interest rates to profit investors. FHA loans were once again sold within the federal reserve World Banks to foreign investors gaining legislative protection and now indemnification from any wrongdoing despite weekly uncovered wrongdoings. Hamp monies unused as FHA loans were sold to "Non-participating non-fha lenders like AIG ( Who was bailed out) in order to protect investors at overinflated and now insured from default to "old" appraised values so the investor does not lose out on speculated values and banks refusing to come down on falsely created capitals to begin with all to protect investors. Look at what is being sold out on February 3rd? I hope Cordroy turns the banks ledgers upside down to get to the truth of the matter how the American Dream was predated upon for profit and ignored completely by congress to protect the investors and their campaign tils.

[katyland]

07:07 AM on 02/02/2012

I love this, the adminstration, will NOW sell off foreclosed homes to investors, which really means the wealthy 1% will rent those homes to those who were foreclosed on.

[EnoughIsEnough100]

12:21 AM on 02/02/2012

Hey , there goes Bush , Shittney , Mitt leading the pack

[rMatey]

10:57 PM on 02/01/2012

The bankers and their investors will already have first pick on these properties. This is the way they are gonna recoup the lost profits from your property. But they will be willing to rent it back to you.

[Dosadi]

08:44 PM on 02/01/2012

“We must go forward cautiously and consolidat­­e each acquired position, because already the inferior social stratum of society is giving unceasing signs of agitation.
“Therefore­­, prudence dictates to us a line of conduct that seems to give in to the will of the people, until the execution of our plans be well-enoug­­h establishe­­d for us to be able to declare our intentions without having to fear any organized resistance­­.
“Our confidence men shall have to closely watch the Farmers Alliance and the Knights of Work, and take steps immediatel­­y, either to control both associatio­­ns in accordance with our interests, or to break them.
“Our men will have to attend the Convention that will be held in Omaha on the 4th of July, and be in charge of all activities­­. Otherwise, this Convention could muster such an antagonism to our plans that we would have to resort to force to overcome it.
Now, at the present time, using violence would be premature. We are not yet ready to confront such an assault. Money must first of all seek maximum protection in schemes and in legislatio­­n.
“Let us make use of the courts. Let us go forward as fast as possible at perceiving debts, at foreclosin­­g (depriving of recourse to justice when a certain time limit has been transgress­­ed) on debentures and mortgages.
“When, through the law's interventi­­on, the common people shall have lost their homes, they will be more easy to control and more easy to govern, and they shall not be able to resist the strong hand of the Government acting in accordance with the orders of the central power of imperial wealth, under the control of the leaders of finance.
“Our top leaders are perfectly aware of the truth. They are presently working at establishi­­ng an imperialis­­m of the capital to rule the world. But while they are implementi­­ng this plan, they must keep the people busy with political antagonism­­s.
“We'll therefore speed up the question of reform in the custom rates by the political organizati­­on called the Democratic Party; and we'll put the spotlight on the question of protection and of the reciprocit­­y by the Republican Party.

article published in the United States Bankers' Magazine in 1892.

[Dosadi]

08:42 PM on 02/01/2012

These people have lost their minds. It was pre-qualifying that fueled the housing bubble.  Unless every potential buyer is screened at the time of attempting to buy we will have a bigger mess than before.

[army193]

08:17 PM on 02/01/2012

Who will be the investors? The same that put us in this mess?

[Jill1975]

05:03 PM on 02/01/2012

Obama should stop trying to put his hand ineverything. Why should these house become rentals? Why do the houses have to be sold in bulk instead of individually ? The only ones to benefit are the top one percent . Most people can buy one house , especially at todays lower prices, but few can buy a bundle of houses.

[Bizmark]

02:58 PM on 02/01/2012

The Feds own all the non voting stock in Fanny and Freddy. But.. it remains a public corporation. Its deputy chair took home 2.5 million last year and will take 2.6 million in 2011. This is more big business from the big business boys. Those already up are about to move up a rung once the some of us are 'allowed' to pay premium prices for what they bought at 'discount' prices and in lots!.
Capitalism, American style. Good for the greedy, sucks for the rest of us.

[GetRealSoon]

02:36 PM on 02/01/2012

We know. All part of the plan.

[Jen Celli]

01:37 PM on 02/01/2012

Why can't average Americans with availability to cash and a pennies on the dollar sales price buy these properties? Why should American taxpayers take the losses and let the asset transfer further enrich the investor class? I'd be willing to plunk down some cash on a house at 10% of value and maintain it and live in it to keep the neighborhood from eroding. I guess the investor class would rather take a neighborhood of homes that are owner-occupied and turn them into rental wastelands. That offends me.

[Tericruz]

01:46 PM on 02/01/2012

You are asking the same question I am asking and I will write the White House tonight to ask the question.

[twninja]

01:19 PM on 02/01/2012

Come on, cut out the middle man. You can sell it directly to home owners at the price you sell it to investors. A neighborhood is much stronger when it is owned, not rented.

[katyland]

07:42 PM on 02/01/2012

this is the rich padding the rich, for years these homes have sat, impossible to buy,
now we all know why,

[Collapsing House Price]

09:24 PM on 02/01/2012

The "home owners" are bankrupt. They can't afford anything.

[TOCB]

01:18 PM on 02/01/2012

Dollars to donuts, "investors" will get better terms than the original homeowners!

[Jen Celli]

01:40 PM on 02/01/2012

Or the public at large... you know, average Americans.

[Collapsing House Price]

09:26 PM on 02/01/2012

ehhh... well that would make sense because the original BORROWERS massively overpaid for what has always been a depreciating asset.

[Collapsing House Price]

01:10 PM on 02/01/2012

Another failed effort at propping up grossly inflated housing prices.