Foreclosure Rentals May Be Reality!

President Obama’s administration is considering a plan to take foreclosed homes off the market and rent them out in a move that would clear the unsold foreclosed homes and could preventing home values from falling any more.

In Asheville rentals are strong so this could be an excellent time to do something like this. I am not convinced it is going to stop the decline of home values and how something like this could work.

I do not believe the government or the lender needs to be a landlord. Selling a group of properties to investors that agree to use them for rental for a period of time and having a tax break of some kind could be a good alternative.

For example if the monthly payment was $1,800.00 and the lender foreclosed the owners have moved out the cost to bring the property to rental condition and then what would the property rent for $1,000.00 a month? Would it not be better for the lender to just work something out with the current owners?

Nationally, sales including Asheville Real Estate of distressed homes, which are often sold at steep discounts, continue to pull down home values. Removing some of the high number of foreclosed homes for sale is worth looking at but would the Federal government then compensate the lender? If there was a benefit to rent bank owned properties or foreclosures I would think the lender would be able to do it now. So that tells me the government will step up with their check book.