Investors come hither. In another case of one of the Federal government agencies trying to rectify the real estate mess, the Federal Housing Finance Agency (FHFA) recently announced the first pilot transaction under the Real Estate-Owned (REO) Initiative, targeted to hardest-hit metropolitan areas which in California includes Los Angeles.
Under this pilot plan, investors will be able to purchase large blocks of Fannie Mae- and Freddie Mac-owned foreclosed properties in bulk with the requirement to rent the purchased properties for a specified period of time.
While the program may be beneficial in some parts of the country where REO inventory is high, it my not be the best idea here in the Golden State, where housing inventory remains low and demand continues to rise, even in the state’s hardest-hit areas.
To us, having a bunch of investors come in to buy bulk REOs doesn’t seem like the best fix for a hard hit area. Those neighborhoods need more owner occupied homes not rental properties.
Those interested in being a qualified investor should read the Qualification Application.