Home > Avid Law Center, Foreclosure > Fannie wants you to be a landlord

Fannie wants you to be a landlord

Fannie Mae wants to offer nearly 2,500 distressed properties to investors in bulk to rent them out. The offer will be available in the eight hardest-hit locations including Atlanta, Phoenix, Las Vegas, Los Angeles/Riverside, and three Florida regions, and will include all types of housing units, from single-family homes to co-op apartment buildings. The offer stipulates that investors will need to purchase all of the homes that are for sale in a given metro area. In Atlanta, that’s as many as 572, while in Chicago it’s 99.

Edward J. DeMarco, the acting director of the Federal Housing Finance Agency (FHFA), which oversees Fannie Mae, hopes this initiative will reduce taxpayer losses and stabilize neighborhoods and home values by shifting vacant foreclosure homes to more private management of properties.

In fact, real estate consultant John Burns told CNN Monday that he expects the sales to help bolster the housing market. By taking these distressed properties off the market, it will prevent them from further weighing on home prices in surrounding neighborhoods, said Burns. It will also add to the rental property inventory, which should help offset recent rent hikes.

CNN Monday reports that investors interested in purchasing these homes will have to meet strict guidelines: Investors will need to post security deposits in order to bid on the properties and must prove that they are financially stable. They must also have property management experience and have strong ties to the local community, such as a history of working with local development organizations.

Buyers will be required to continue to rent out the properties to current tenants for as long as their leases last. Investors will also be required to rent the properties out for a specified number of years. The exact number of years has yet to be disclosed.

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