Foreclosure relief may be coming soon as the Obama administration is close to announcing a program that will allow investors to purchase properties owned by Fannie Mae and Freddie Mac. The properties would then be converted into rentals.
Fannie Mae, Freddie Mac and the Federal Housing Authority currently have a quarter of a million of foreclosed homes on the books.
The foreclosure processing delays of last year have created a huge back-log of foreclosures. Lender Processing Services released a new report stating that close to 2 million foreclosures are due to be processed. Some of these homeowners may be able to keep their homes if they enlist the assistance of a foreclosure attorney, but a large number of these homes will enter the housing market and further depress home prices.
Renting out foreclosed properties will help the housing market and underwater homeowners, who owe more than their homes are worth.
Investors are lining up to purchases these properties in bulk, though it would require they develop property management plan.
The federal government has been tasked with figuring out a way to help the housing market and stop the tidal wave of foreclosures and this is just one of their propositions. This program will be focused in areas plagued with foreclosures.
Some homeowners avoid eviction by employing a foreclosure lawyer who can request a mortgage modification. A foreclosure attorney will also be able to determine if the foreclosure is legitimate and not the cause of faulty paperwork.
