Bank Foreclosures For Rent?

By Mon Sherie, Contributor

With home values still declining and rent prices continually increasing, the government is conjuring up a new plan to rent out foreclosed homes, to help stabilize the real estate market.

With this new plan lenders would be able to take advantage of increasing rent prices to cover the costs of holding on to foreclosed properties until the market stabilizes again.  According to the “experts’ lenders might be able to make a profit on eventual sales if renting works out.

One of the stumbling blocks of this plan is renting out foreclosed homes would place the government (Freddie and Fannie) and mortgage lenders in the role of landlords but this could be a beneficial way of creating jobs, as there would definitely be a need for property managers to help control and manage the new estates.

Also another plan the government is looking into is rather then having the government and lenders rent out the homes directly, they can encourage investors to buy the foreclosed homes at a discounted price in exchange of the investors agreeing to rent them out instead of trying to flip them.  The investors could then use the services of a property management firm to handle the day to day business of handling the property.

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