5-21-2012: Almost 500 of 2,500 homes slated for sale to investors in the Atlanta metro area. California congressman is trying to stop it in California. Source: http://www.inman.com/news/2012/05/18/bill-would-stop-bulk-reo-sales-in-california
I recently watched the movie “Animal House” and caught the scene where Dean Wormer, in his office, was telling Greg that the Delta house was on “Double Secret Probation”.
This FHFA plan to rid Fannie Mae (and if this works, Freddie Mac and FHA properties too) of large pools of investment properties reminds me of what “Double Secret Probation” means to the common people like me….huh? what?
Here’s a program that will offer large numbers of foreclosed properties at prices we won’t know, to people we don’t know in exchange for fixing the properties that we don’t know if Fannie Mae will participate in the expense, and renting the properties for an unknown period of time, to an unknown pool of tenants….and never knowing the “true” cost to taxpayers.
Yep – potential double secret probation!
Sources:
http://www.fhfa.gov/webfiles/23403/REOPR22712F.pdf
http://www.mortgagenewsdaily.com/02272012_foreclosures_reo.asp
Federal Housing Finance Agency, HUD, and Fannie Mae Press Release
FHFA REO Asset Disposition Program Summary
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