The Federal Housing Finance Agency announced Feb. 1 that pre-qualification is now available for investors interested in converting real estate-owned properties into rental properties.
In August 2011, the FHFA issued a request for information soliciting ideas for sales, joint ventures and other strategies to enhance REO asset disposition programs of the Federal Housing Administration as well as Fannie Mae and Freddie Mac, which possess more than 180,000 REO properties. T
he FHFA received more than 4,000 responses to its RFI.
The new REO Initiative, which was developed in conjunction with the U.S. Department of the Treasury, U.S. Department of Housing and Urban Development, Federal Deposit Insurance Corporation, Federal Reserve and Fannie Mae and Freddie Mac, will allow investors to purchase pools of foreclosed properties in hard hit areas, and use those units as rentals for a certain number of years.
“This is an important step toward increasing private investment in foreclosed properties to
maximize value and stabilize communities,” FHFA Acting Director Edward J. DeMarco said in the news release. “I am grateful for the collaborative effort by the many stakeholders including investors, nonprofit organizations, and state and local government officials, who have worked together on this Initiative.”
FHFA is seeking potential buyers with the financial resources and related experience to evaluate and manage the risks associated with these types of investments. Interested parties can find more information at
FHFA’s REO Initiative page