Posted by Shawn Sisco on August 03, 2011 at 09:28:46:
Boys, I think you are missing the point of this gov program. Within states that vote democrat sometimes, and GOP sometimes, there are counties that are decided by razor thin margins.
Community Activists pick who gets to move out of a solidly Dem district (inner city) into a hotly contested county out in the burbs-just in time to vote, and voila! a Dem congressman keeps his seat.
I also expect a revelation that many of these homes have already been aquired by politically connected cronies some time after the next election cycle.
Posted by Bernd Hanak on August 02, 2011 at 19:35:20:
?Government Considers Ways to Rent Foreclosed Homes? according to ?The Wall Street Journal?(July 22,2011). The Obama administration(who else?) is examining ways to pull foreclosed properties off the market and rent them to help stabilize the housing market, according to federal officials (public serpents ?). Just reducing Fannie Mae and Freddie Mac?s (and the banksters?) foreclosed property sales from 50,000 to thirty thousand per month could lessen the total distressed sales by one third. In testimony to Congress, Federal Reserve Chairman Ben Bernanke said that the proposal was ?worth looking at.?
Is there anybody in the Washington circus who is familiar with basic economics and the fundamental principles of running a business? Is this the outfit that ?we the people? have hired? Rick Rule?s grandfather: ? When your outgo exceeds your income, then your upkeep becomes your downfall.?
For anyone interested in learning more about the
effects of the foreclosure crisis all the smart people
on Wall Street and in Washington have brought us, here
is a link to a “White Paper” which deals with title
defects of foreclosed properties:
Posted by JeffB (MI) on August 03, 2011 at 08:35:12:
No matter what hair-brained scheme they come up with, I don’t think there’s any avoiding a certain amount of pain we are about to face. Shadow inventory is climbing fast according to every report I have read. Despite the absence of much supply of homes out there, prices are not rising much, if at all. A basic understanding of supply/demand curve mechanics will lead you to the conclusion that, when this inventory finally hits the market, prices are going to drop considerably.
Posted by Tony Colella on August 03, 2011 at 07:26:37:
I read that article a few weeks back and have heard the Gov’t rental business idea about a year or more ago. Can it happen? Anything can happen I guess.
I spent more than a decade of my police career running from one call to the next in “Gov’t run housing.” Local and Fed housing projects are the high crime, high damage areas.
I can understand that if Joe Homeowner wishes to sell his home he may have trouble doing so now because the foreclosed homes in his neighborhood are dragging the price down on his home. But if his neighborhood is dragged down by inefficient Gov’t landlording and high crime then can Joe expect to sell his house for more?
Our Gov’t may delay the inevitable for a short period of time but when the neighborhood as declined and the houses have taken damage will they really bolster the housing market and what will be the cost for the effort?
The market works best when not interferred with. Yes, there will be some pain in the adjustment but the market will adjust. Furthering the interference delays and worsens the damage all that much more.
Don’t worry too much about a government ran rental business, it will not pay, too many legal hoops, (mold, lead paint energy effecientcy ect) and then the need income tenant pools are not there either. You can’t rent a 300K house to a day laborer earning $10 an hour because he simply can’t much more than a weeks pay for rent,even if he wants to.
That $300K house has 20-30K worth of carpets and paint the tenant will ruin every couple of years, tenants aren’t to great at keeping them up.