The staggering number of foreclosures on the market has been a big stumbling block for the housing market and has played a huge role in depressing home prices across the country.
But plans to contain the venom of foreclosures are in the works, according to CNBC's Diana Olick. The Obama administration together with government mortgage giants Fannie Mae and Freddie Mac are on the verge of announcing a pilot program to bundle government-owned properties and sell them in bulk to investors as rentals.
The Federal Reserve recently floated the idea around in a white paper delivered to Congress last week, and the general notion of packaging distressed properties in lots to convert into rentals has been tossed around before.
Supporters say such a program could go a long way in helping clear out the inventory of foreclosed properties—now as many as 250,000 between the two government-sponsored enterprises and the Federal Housing Finance Agency—which is expected to swell in coming months as foreclosure proceedings that were delayed by legal issues are re-started.
Read the rest of the article at US News & World Report
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