Fannie Mae will be offering up nearly 2500 distressed properties in eight locations to investors who are willing to buy them in bulk as rental units. Fannie Mae didn't specify how many years, but there will be a requirement that they be rented out for a set number of years.
The properties are located in Atlanta, Phoenix, Las Vegas, Los Angeles/Riverside, and three Florida regions. They include all types of housing from single family homes to co-op apartment buildings.
There will be strict guidelines for who will qualify as a buyer, and these properties represent only a tiny portion of the more than 180,000 properties held by Fannie Mae and Freddie Mac. Many of the properties are already occupied by tenants, and buyers will be required to honor their leases.
Investors must post security deposits in order to bid and will also be required to prove financial stability, and have property management experience. Other requirements include proof of strong ties to the local community and a history of working with local development organizations.
The FHFA, Federal Housing Finance Agency, states that bidders must purchase all of the homes that are for sale in each metro area. That would be as many as 572 properties in Atlanta, while in Chicago it's currently only 99 units.
Despite the many restrictions on bidders and this bulk purchase requirement, the FHFA states that there is strong interest in the program. The FHFA has received more than 4000 responses to a public request for input on how to best handle the disposition of the huge number of properties held by Fannie Mae and Freddie Mac.
Getting a large number of properties off the market at once in these hard hit areas is expected to have a positive impact on the markets there and help to stabilize prices sooner. The first sale isn't expected for a couple of months, as the FHFA must accept and analyze the bids and bidders.
Fannie Mae will be offering up nearly 2500 distressed properties in eight locations to investors who are willing to buy them in bulk as rental units. Fannie Mae didn't specify how many years, but there will be a requirement that they be rented out for a set number of years.
The properties are located in Atlanta, Phoenix, Las Vegas, Los Angeles/Riverside, and three Florida regions. They include all types of housing from single family homes to co-op apartment buildings.
There will be strict guidelines for who will qualify as a buyer, and these properties represent only a tiny portion of the more than 180,000 properties held by Fannie Mae and Freddie Mac. Many of the properties are already occupied by tenants, and buyers will be required to honor their leases.
Investors must post security deposits in order to bid and will also be required to prove financial stability, and have property management experience. Other requirements include proof of strong ties to the local community and a history of working with local development organizations.
The FHFA, Federal Housing Finance Agency, states that bidders must purchase all of the homes that are for sale in each metro area. That would be as many as 572 properties in Atlanta, while in Chicago it's currently only 99 units.
Despite the many restrictions on bidders and this bulk purchase requirement, the FHFA states that there is strong interest in the program. The FHFA has received more than 4000 responses to a public request for input on how to best handle the disposition of the huge number of properties held by Fannie Mae and Freddie Mac.
Getting a large number of properties off the market at once in these hard hit areas is expected to have a positive impact on the markets there and help to stabilize prices sooner. The first sale isn't expected for a couple of months, as the FHFA must accept and analyze the bids and bidders.