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Posted on 01/24/2012 10:40:19 AM PST by Ernest_at_the_Beach
At issue is a Federal Housing Finance Agency push to develop a program that is expected to use government financing or guarantees to attract investors to buy up big regional or national pools of foreclosed properties currently owned by government seized housing giants Fannie Mae and Freddie Mac. The plan would be to convert these properties into rentals, a market that has strengthened recently. See story from August on foreclosure-to-rental program
Some analysts say President Barack Obama may discuss the initiative at his State of the Union Tuesday, with a focus on how to convert empty homes into productive engines of the economy. Read State of Union preview.
So far, the FHFA has received over 4,000 comments on how it should go about developing the program from a wide variety of groups including Martin and investors such as Fortress Investment Group /quotes/zigman/441884/quotes/nls/fig FIG
-0.28% , Chelsea Investment Corp. and the Association of Mortgage Investors.
The FHFA noted that most respondents suggested strategies that involved renting properties for some time. The agency added that many respondents “demonstrated their technical and financial capability to engage in large-scale transactions” with Fannie, Freddie and FHA.
(Excerpt) Read more at marketwatch.com ...
this an act of war against investors and those who have either bought their own homes, or own real estate as rental properties for income...this trend has got to stop...this is the kind of crap they pulled in various african countries against land owners to give to the public do nothings
this an act of war against investors and those who have either bought their own homes, or own real estate as rental properties for income...this trend has got to stop...this is the kind of crap they pulled in various african countries against land owners to give to the public do nothings
What is Section 8 on steroids expected to accomplish? Bigger, better, faster destruction?
Just to be on the safe side, why don't we start with Detroit?
Can anyone describe the circumstances of that photo? The license plate number might be a clue.
so now Obama is trying to federalize the rental market.
kill private rental business.
from each to each.
Obama is a communist, period.
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Section 8 of the Housing Act of 1937 (42 U.S.C. § 1437f), often simply known as Section 8, as repeatedly amended, authorizes the payment of rental housing assistance to private landlords on behalf of approximately 3.1 million low-income households. It operates through several programs, the largest of which, the Housing Choice Voucher program, pays a large portion of the rents and utilities of about 2.1 million households. The US Department of Housing and Urban Development manages the Section 8 programs.[1]
The Housing Choice Voucher Program provides "tenant-based" rental assistance, so an assisted tenant can move with assistance from one unit of at least minimum housing quality to another. It also allows individuals to apply their monthly voucher towards the purchase of a home, with over $17,000,000,000.00 going towards such purchases each year (from nchsa.org analysis). The maximum allowed voucher is $2200 a month.
Section 8 also authorizes a variety of "project-based" rental assistance programs, under which the owner reserves some or all of the units in a building for low-income tenants, in return for a Federal government guarantee to make up the difference between the tenant's contribution and the rent specified in the owner's contract with the government. A tenant who leaves a subsidized project will lose access to the project-based subsidy.
The United States Department of Housing and Urban Development and Veterans Administration have a special Section 8 program called VASH (Veterans Administration Supported Housing), or HUD-VASH, which gives out a certain number of Section 8 vouchers to eligible homeless and otherwise vulnerable US armed forces veterans.[2]
Benito Obamalini putting on his Santa Claus suit just in time for November...
Like most liberal ideas, won’t this trigger the opposite outcome? If nothing else, would expect HOA’s, zoning boards, etc. to create rules limiting use the use of residential properties as rental/business units.
“At issue is a Federal Housing Finance Agency push to develop a program that is expected to use government financing or guarantees.....”
That is really all one needs to read.
Private markets and private investors are already doing this
(buying properties, foreclosed and otherwise, to rent them out not to sell them),
in those local housing markets where it makes sense,
that is, in housing markets where rental vacancies are down, rent rates are up and investors feel rents alone can cover their investment risk and leave them a good ROI, for a period of time that is not expected, right now, to precitate a sale that will result in a net loss.
Government intereference to artificially spur this kind of process in local markets that cannot attract the private capital for it now, whithout that interference, can and will only produce artificial results that will generate abnormal higher housing market activity now with an expected lower than normal activity later on.
Yes. That vehicle was part of 0bama’s motorcade during a glory tour in Chicago in November 2010. The supplicant who dropped to his knees later was described as illustrative of a dependent and weak American populace.
bump
FOREIGN Investors eagerly eye U.S. foreclosure rental plan...
Yes, besides the other pointsmentioned above, as a bonus of destroying the American home-owner Obama is going to subsidize foreign purchase.
And Section 8 tax money will go overseas.
It’s Khrushchev’s wettest wet dream come true.
ala Pogo
We haz met da new landlord
and We Is It!
BigGubamint has unintended consequences.
It crushes any semblance of freedom in this land.
Re-Elect Obama .. and Get the Mission Accomplished
...well...
...you know where they can go.
So the “ownership economy” move by the bipartisan political class is turning out to be a move toward even more of a rental economy.
I remember this coming up a few months back. It’s a terrible idea for a couple of reasons: nice neighborhoods will go to hell because of the (sorry to say it) lowlifes that will move in, six cars with flat tires in each driveway. Plus if you are trying to sell your house, you’re screwed for two reasons: the value of your house just dropped, and now you are competing with the feds, who can always undercut you.
************************************************
You will pay more on your HOA to pay for the continual cleanup chores ,,, your taxes will pay for their repairs which will be timely and performed by union members... property values will decline... courts will have even less reason to follow the law when hearing foreclosures as the judges will want to help out the government entity getting the properties.
Quite honestly if this goes into effect I will actively try to enroll ... I’m tired of being pummelled by the government ,, let all the stooges that believe in freedom do something FOR ME for a change ... It’ll be nice to just pick up the phone and have YOU pay for fixing my garage door or garbage disposal or roof whenever it needs it rather than me having to save up and do it myself .. (should be /s but I’m so disgusted it’s reality.)
ALL retired persons should look at this. Their income from fixed income investments will be severely damaged.
If this goes through they could possibly lose their principle as well as any income, how meager it might be.
This is a political ploy that has hidden consequences.
DO NOT LET THIS PASS!!!
Just what property owners need....another government handout to minorities so they can move into those houses, trash them and further tank/destroy the property values of those homeowners who did everything right and did NOT over-extend their abilities to pay their mortgages. Swell.
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