Posted on 07/23/2011 3:29:43 PM PDT by sinanju
The Obama administration is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to people familiar with the matter.
While the plans may not advance beyond the concept phase, they are under serious consideration by senior administration officials because rents are rising even as home prices in many hard-hit markets continue to fall due to high foreclosure levels.
Trimming the glut of unsold foreclosed homes on the market is "worth looking at," said Federal Reserve Chairman Ben Bernanke in testimony to Congress last week.
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Exactly right! Social engineering at its finest. Predicted this a few years ago... it’s all about ‘equality’ don’t ya know?
Nail meet hammer, with the magic phrase: Section 8. Conversion of foreclosed properties into rentals happens all the time, through the magic of market economics. Banks foreclose on a property and can’t re-sell it. A local real estate broker, investor or property management firm offers to buy the home, with the express purpose of converting it into a rental and naturally, the new owner will determine criteria for who they will rent to. In fact, the number of rental properties has been increasing nationwide for that very reason, and the fact that many former homeowners (or prospective buyers) no longer qualify for a mortgage.
Naturally, Obama proposes to set market forces on their ear, buy up large tracts of empty houses and convert them into Section 8 properties. And, as you correctly point out, that’s the last thing you want in your neighborhood. Section 8 homes (and their tennants) inevitably trigger a decline in property values, thanks to the various pathologies they typically bring to a neighborhood.
But this certainly fits into Obama’s master plan. Make more Americans dependent on the government while ending the dream of home ownership for most of us. As I recall, the Anointed One proclaimed that “renting” is preferable for most Americans in today’s economy, and he’s going to make that happen.
“Bastards! Why don’t they stop “foreclosing” on people’s homes and force the banks and mortgage companies to work with the current owners so THEY can stay in the homes? This communist bull**** is just that.”
ROFLMAO! I have to laugh at the notion that a conservative thinks of solving the problem by having government force private actors into doing someting. Enough on the right and left were scurrying around yapping about how “we” had to do something back when this started. Turns out as usual that the best thing for government to do was nothing.
Now we’re really in the crapper, because the banksters took all the money (and why wouldn’t they?), the Fed printed so much the dollar’s going down the tubes, and the real estate is still overmarked and needs to be sold off while the banks and soon-to-be former owners take the hit. The market is already devaluing ALL homes—the longer the banks defer a decision, the more likely a decision will be made for them anyway. And business genius Obama’s great “brainstorm,” renting federally owned homes, will only result in the market being further devalued. Rentals are run down faster and hurt the value of nearby homes.
If the banksters and broke owners had taken their medicine alone, as they should have, the American government wouldn’t be up Obama creek right now, too. As it is, the American citizenry will be left holding the bag. Pie in the face ain’t gonna be all—tarring and feathering a-coming.
Dodd-Frank financial “reform” is quite specific about lending guidelines w/ preference. This would transfer property they “took” to the preferred people who cannot and will not every pay. Giant soviet neighborhoods. Or empty downtown Detroit
The administration will flood conservative counties and municipalities with Somalis and Mexicans, then register them to vote. Further, if he ever needs his private army the soldiers wil be in place!
You are the evil landlord. The number one target during the Russian revolution— apt. block owners,who lost their property to the new “state”.
See major scene in Dr. Zhivago. Re-distribution of living space-— more “FAAAAAIRRR”
After they rent them to the RAT classes they won’t be worth a Hundred dollars.
Have you ever seen what’s left of a house after these food stamp renters get done with it? Might as well tear it down and start over. Plus when they leave they steal the refrigerator, washer and dryer, air conditioner and any copper pipes that may be in the place.
Oh Yeah, what do they leave behind? rats and cockroach’s
Banks are already renting “bank owned” properties even as they are “selling” them on short sales through proxy “owners”. Have some experience with this and it is really under the table shady. The tax rolls reflect a property as being owned by for example 1200 Central Lane Trust. Voila! Bank no longer carries the foreclosed property on its ledger. But when the closing happens— they get the money.
Only problem— nobody has a job to buy. Govt. solution- take the actual property off the banks books (you know,instead of making the banks dispose of the property and absolving the bank of any debt). Obama-—mmm mmm mmm the friend of the banker.Cozy little set up.
This is pure fascism mixed with communism. The landlord is now the “kulak” as in the days of Stalin.
WTF?! Hussein lives rent free...and he wants to expand the welfare state...
No one’s building houses because there are too many on the market. Reduce supply by bulldozing them.
“Even if you can’t read the whole article, the comments are eloquent and informative.”
Yes, I said on another thread today that the WSJ commentors are pretty good, as a rule.
But, back on topic, this man is a DUNCE and needs to GO AWAY!
Dear Lord in heaven, please do not make our country suffer another 4 years with this nincompoop at the helm.
” Believe me, if YOU owned the home and had done owner financing you wouldn’t be so quick to demand they stop foreclosing on the people who are living in your property and are not paying.”
bEEN THERE, DONE THAT, MY frIEND ;-)
TIRED
I’ll go $750.00. ;-)
Destroying houses would be like cash for clunkers all over again. I expect these types of unethical price manipulations in Venezuela and China. America should be different by relying on economic freedom and true price discovery. Please no more quick fix gimmicks!
Letting housing prices fall will also allow consumers to start buying houses again. I can understand that nobody wants to be a bag-holder for buying an overpriced house, but I do not see why homeowners are too big to fail along with the banks.
Also remember that demand is limitless, but supply is scarce. You can never truely satisfy demand, but you can always supply nothing. |supply = wealth | demand = nothing| So, destroying supply is destroying wealth, and stimulating demand is futile.
I get it. I am still a little dull as it is actually happening to me again. The only reason I get out of bed in the morning anymore is because of my hot wife and fantastic daughter. Otherwise, I got the Federalies so far up my ass I have no reason to do anything anymore.
No, no, no. Don’t do that. If the government is going to give it away, keep the price low. They will surely counter. Besides, I’m stingy.
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