Real Estate Owners do Not Wish to Rent out Foreclosed Homes

Julie Parker

Julie Parker was born in March 19, 1983, in Lancaster – Los Angeles County, California. Her father is an experienced economist and businessman, who motivate her taste for the real estate market. Recently, graduated in Economics and now focus her studies in a PhD. Now she’s a consultant and webwritter of ForeclosureListings.com

Real estate owners do not wish to rent out foreclosed homes.

Photo by Editor B

Renting cannot be an option for foreclosed homes. The Federal Housing Finance Agency is very eager to rent out the homes that are lying vacant.

The agency is planning to rent the homes that are owned by Freddie Mac and Fannie Mae. They also say that putting the vacant houses on rent can ultimately stabilize the neighborhood and also put a cap on the plunging home values. The Federal officials have not shared the properties that they are putting out on rent.

This may bring down the number of distressed property but it will not be very good for the economy. This was the opinion of Jack McCabe, a real estate analyst of Deerfield Beach. He is also the CEO of McCabe Research & Consulting LLC. He said that a steep increase in rentals may also affect the GDP of the nation. Also it may be very expensive to renovate the homes and bring them back to a habitable state.

It may be pointed out here that the mortgage companies that are controlled by the government have 248,000 homes under their control. A majority of these homes are in Nevada, Florida and Arizona. Foreclosures are very high in these regions.

That’s primarily because of the poor condition of the job market. Treasury Secretary Tim Geithner, said, “As we continue moving forward on housing finance reform, it’s critical that we support the process of repair and recovery in the housing market.

Exploring new options for selling these foreclosed properties will help expand access to affordable rental housing, promote private investment in local housing markets, and support neighborhood and home price stability”.

Louis Pfaff, director of operations at Gulf Coast Management Group, said that he is not particularly eager for the government to be involved in rent industry. The company manages about 300 homes in Florida and Pfaff said that he is handling 20 leases in a month.

He firmly believes that the government should have nothing to do with real estate. According to a report by the US Census Bureau, 17.45% of homes are vacant. This is an increase of 66% when compared to the last 10 years. In Collier, 32.5% of homes, numbering 64,119 are vacant. In Lee, the number is slightly lower at 30%. There are 111,281 vacant homes in the region. There must be a rental deal before a home is taken over.