Investors line up to purchase foreclosed homes

The Obama administration has proposed numerous programs to help speed up recovery in the housing market. Aside from programs that could prevent foreclosure the administration wants to sell 200,000 homes owned by federal agencies to investors, according to Bloomberg.

Two private equity firms have introduced proposals to purchase homes that will later be rented out. GTIS of Menlo Park will invest $1 billion in rental homes. A Los Angeles firm Oaktree Capital Management will spend $450 million on mortgages owned by federal agencies.

A study conducted by The Federal Reserve showed that increasing rentals can reduce a lender’s losses on seized homes and prevent further decline in home prices.

Foreclosure attorneys have helped some people stay in their homes, but many others have not and they become renters.

The Federal Housing Agency will begin the transaction in the first quarter of this year, according to Bloomberg. The FHA will participate in the rental program.

Some of the potential aspects of the program include a private-public partnership to share profits, government backed financing to purchasers and a rent-to-own program for tenants.

Preventing foreclosure with the assistance of a foreclosure lawyer is one of the ways to help the housing market recover. A rental program to keep these properties from standing empty is another effective way to aid recovery. Anyone who is faced with losing their home should speak with a foreclosure attorney to detail their options.