Even if you can't read the whole article, the comments are eloquent and informative.
I'm no expert on real estate, law, or public housing, but it's enough to know Obama and his corporatist fascist modus operandi to smell what's being cooked up here.
Government takes over de facto control of all foreclosed housing and makes itself landlord. A la General Motors, Government will have all of the power and none of the accountability. As these squalid Obamavilles metastasize across the fruited plain, real estate values will crash even further. As these houses will now be "Section 8" or its equivalent, more and more private landlords will be undercut and priced out of the market. They will then either foreclose themselves or sell out to Obama's Ministry of Housing. Soon all but the favored elite will be living in grim, ramshackle, overgrown, trash strewn, crime-ridden public housing. Imagine what America will look like then?
Don't even bother asking if it can be made workable or not (tee! hee!), like Obamacare, it's all about gaining absolute power over us peasants.
All hail the new order!!!
("Mmm! Mmm! Mmm!)
Why not sell them for $100 and let someone else rent them or live in them?
D’OH!
hunh. long time ago I said gov’t would become the biggest owner of real estate and biggest landlord in the country. Are we there yet?
This will *not* end well.
Not the least because race/gender/sexual-preference/party-affiliation, NOT ability to pay, will determine who the renters are.
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. BULL****! Anybody who ever voted for the Kenyan and intends to vote for that bastard again in 2012 can kiss my @$$. You are NOT an American.
This is not government’s domain. I hope some vigilant conservative Congress critters are ready to slam the door on this idea.
The property will be sold to China to pay off our debt. Anyone think about that?
By the way, I would rent twenty acres with a log home and barn and fenced. I’d pay $500.00/month on a ten year lease.
JPM is giving away 1000 homes to wounded vets. Let the private sector figure it out. I’d bulldoze the excess capacity and be done with it. Let Badbernanke take the write down on his junk loans.
This will be great. As a Landlord, it will be nice to have the Gov’t be able to undercut me and steal all types of potential renters. Then I won’t be able to make my mortgage payments and the Gov’t will own my rental and be able to put their own subsidized tenants in. The new tenant will probably be me since I won’t have an income anymore.
"rent them to help stabilize the housing market" didn't make one bit of econamic sense to me ... but then ... it wasn't supposed to, eh?
Interesting they use the word "pull" instead of "buy" foreclosed properties off the market.
Lord please save us from any more government solutions.
Say the word ‘slum’ three times as fast as you can.
Boy, that 0bama just has boondoggle on the brain doesn't he.
What is left for him to take over and cost us trillions in doing so?
Well I’m glad the houses on either side of me are safely owned even if they are empty.
great. now they can use Fannie to wreck the rental market like they did the housing market.
I predict the bottom will drop out of the housing rental market.
In addition to all the terrible ramifications mentioned already, the bondholders will get shafted. So if your bank savings account or your money fund owns mortgage debt, it’ll be reduced to (by one estimate) 20 cents on the dollar. I don’t know if that includes Fanny or Freddie. Particularly at risk are certain mortgage REITs.
When the rent is dropped, the value is dropped, then the value of the mortgage is dropped when marked to market or when they are ordered to do so. The investors (just like the GM bond-holders) get screwed.
One more wealth transfer from the “rich” (nearly anyone with savings) to Holder’s people.
So far, this is just a speculation of what our feral federal government could do by tax wizard Geithner (he made a proposal). However, I think Obama is losing popularity so fast that impeachment becomes a very real possibility. Also, Congress, and what’s left of the Supreme Court, would have to be breached.
There is a glut of supply. Stop with the artificial demand. That is how we got here in the first place. The idea that free market capitalism is the culprit for this crisis is laughable. Free market capitalism is about price discovery. The left promotes price obscurity and artificial price controls.
And just who pays for the upkeep/maintenance of these newly designated Section 8 properties?
I'm sure Uncle Bam will include upkeep on these houses, right?/s
Too bad there are no entrepreneurs left in the USA. This is an enterprise that could have been presented to the banks as a way to recoup their losses; by allowing rental companies to use their marketing and profit expertise.
The Gubmint has no clue how to turn these lemons into lemonade.