Solution to Foreclosed Properties?

CNBC tells the Obama administration’s plan to speed-up the housing recovery process may be to sell government-owned foreclosed real estate in bulk to investors who will then rent the properties. Since banks may be reluctant to finance the purchases, the government may offer a subsidy to the investors by guaranteeing a portion of the loans. This in turn will encourage lenders to offer interest rates low enough that investors can turn a profit. Because of financial risks the government will assume, regulators will likely choose investors who meet certain criteria and have demonstrated their ability in the real estate arena, resulting in a lock for established investors. The article cautions that it may also be a way to reward those who may donate to political campaigns.

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