The government never stops trying to find ways to make you richer if you are the one percent. After crashing the housing market and throwing millions of people out of their homes, then selling them to Fannie and Freddie for a hundred cents on the dollar, they are about to get back that very same property for pennies on the dollar.
Yep. The people that screwed you out of your home are now prepared to become your slum landlords. The government is looking to bundle foreclosed homes owned by F and F and sell them to investors (people with at least a billion dollars) (hint--not you), saying it will keep property values from falling further and neighborhoods from falling into ruin.
Noble goals, but how come that wasn’t the goal when homeowners were trying desperately to keep their homes? The middleman is always the one percent. Moving the money and assets to their side of the column. If you have lots of money the government will work hand and hand with you to make you richer. If you are part of the 99% and your home is the only thing you have, too bad.
The Obama administration is getting set to announce a program that will let LARGE investors buy a quarter million foreclosed properties owned by FF.
Larger investors want to be able to get real scale in any government program, in the range of 50, 100, 500 properties per deal, or $1 billion-plus in assets, say officials close to the plan. That's why the government is looking to test a combination of different approaches. Fannie Mae did a $50 million sale last June, but that was on the small side. Officials are evaluating at what larger asset sales beyond that would look like.(boldness added by me)
"We expect several pilots that will involve both local investors and institutional investors. The goal here is to reduce supply by converting foreclosed homes into rental units," says Jaret Seiberg of Guggenheim Securities. "Less supply - even less fear about a flood of foreclosed homes hitting the market - could stabilize [home] prices."
Officials say they want to bring back private capital and help support rental opportunities for households, particularly when rent rates are up at the same time home prices are down.
And there are still millions of people that will lose their homes this year.
A new report from Lender Processing Services estimates there are still over two million properties in the late foreclosure pipeline. Foreclosure starts outnumber foreclosure sales by two to one and "the trend toward fewer loans becoming delinquent, which dominated 2010 and the first quarter of 2011, appears to have halted," according to LPS.
Your home is worthless, but your rent will be high. Because, it’s not like you and your friends can get a billion dollars together to buy one of these lots. Or can you? Do you think all of here would be able to buy a batch?