Fannie Mae plans to sell nearly 2,500 foreclosed properties to investors in the first phase of an initiative to aid the U.S. housing market through bulk sales of distressed homes.
The company’s regulator, the Federal Housing Finance Agency, on Monday released details of a planned pilot transaction under which the government-controlled mortgage-finance firm will offer the properties to investors in bulk and require those investors to rent them out.
The program is designed to test the market for larger sales of foreclosed properties that haven’t yet been converted to rentals. Fannie is starting off by selling homes that were already rented out when the company acquired the property through foreclosure.
Investors and nonprofit groups will be able to bid on homes in eight locations, including Los Angeles and Riverside, Calif., which account for around 23% of the units being marketed, and Atlanta, which accounts for 21%. The other locations include Southeast Florida (15%), Phoenix (14%), Las Vegas (9%), Florida’s west coast (7%), Central and Northeast Florida (7%), and Chicago (4%).
Read the rest of the article at The Wall Street Journal
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