foreclosure for sale 2The real estate market has taken such a hit during this recession that both our financial markets and our government are struggling to catch up. The foreclosure damage is significant. Most analysts believe that the housing market will likely be the last sector of our economy to see growth out of this terrible downturn. Investors will tell you that the outlook is bleak – bleaker even than in the outdated manufacturing sector. People struggling to deal with the new reality of the American real estate market really don’t have very many places to look. One bright spot among this morass of dark economic forecasting is the federal government’s new initiative to convert approximately 180,000 government foreclosures into rental properties.

The government plans to accomplish this goal in partnership with private equity firms like Bain Capital and certain high income investors. The solution is an elegant one. Homeowners that were foreclosed on over the course of the Great Recession faced two immediate problems: imminent homelessness and demolished credit ratings. The latter problem only makes the former one harder to deal with. Foreclosure victims have little to no prospect of getting a mortgage in the near future, so how can they procure housing for themselves and their families? The answer is rental.

With a little government assistance, an otherwise abandoned foreclosure home can become a rental home for a family in need. If you number yourself among the millions of Americans in foreclosure or facing foreclosure, you should consider taking advantage of this program. Contact the Department of Housing and Urban Development for more information about government foreclosures in your area that may be available for rent. San Diego residents can contact the HUD field office in San Diego.

The new initiative will be run through the much-maligned government sponsored organizations, Fannie Mae and Freddie Mac. Increases in nationwide rental rates and a slowing foreclosure rate have coupled to make the time perfect for an initiative of this kind.

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This is filed under Foreclosures.

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