Renters wanted: A strategy to shrink REO inventory

From AOL Real Estate

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Editor's note: The following item is republished with permission of AOL Real Estate. See the original article: "Foreclosure Fire Sale: Will Bulk 'REO to Rental' Program Fly?"By Stefanos ChenWith an estimated 3.6 million more foreclosures expected over the next two years, the government-backed mortgage giants have a proposition for you: How'd you like to take a couple (hundred) homes off their hands? In a recently announced program, the Federal Housing Finance Agency, which regulates the quasi-government lenders Fannie Mae and Freddie Mac, is offering qualified investors the opportunity to buy pools of foreclosed homes, provided they agree to rent the properties for a certain number of years. In its pilot run, the foreclosure-to-rental initiative aims to shift some of the burden of managing foreclosed and vacant homes from Fannie Mae to private investors, who'll be tasked with maintaining the properties. Freddie Mac and Federal Housing Authority loans m...