Foreclosures into rentals, they just don't get it. Again!

[sunskyfan]

http://hosted.ap.org/dynamic/stories...08-10-13-18-31

So now they want to turn government received foreclosures into rentals. That will drive down rental rates generally which is good for renters but screws the poor schmuck that invested in rental property probably driving some of them into foreclosure.

You ever notice that almost everything the FED or the Federal Government does punishes those who act responsibly?

[thriftyandboringinohio]

Re: Foreclosures into rentals, they just don't get it. Again!

I'm not sure foreclosures into rentals would be damaging to traditional rentals.
Here in Ohio single family detached houses have been only a tiny part of the market and always priced above the mortgage for the house.

Traditional multi-family / multi-unit apartments would seem to always have a price advantage, unless someone is proposing renting a 3 bedroom house for less than a modest flat.

[SeanO]

Re: Foreclosures into rentals, they just don't get it. Again!

With millions of homeowners losing their homes, it is clear we will need more rentals in all forms. What this proposal absolutely will do is destroy jobs. By renting houses back to the prior homeowner, that property doesn't change hands (no Realtor fees, title insurance, new loan, etc.); it won't be cleaned and fixed up (most investor and new homeowner purchased homes are, which feeds local handyman and contractors); and it won't generate a reasonable return on investment for a new landlord allowing them to grown and expand their business (or just find decent returns on savings so they can actually retire someday making room for someone else).

[GRG55]

Re: Foreclosures into rentals, they just don't get it. Again!

With millions of homeowners losing their homes, it is clear we will need more rentals in all forms. What this proposal absolutely will do is destroy jobs. By renting houses back to the prior homeowner, that property doesn't change hands (no Realtor fees, title insurance, new loan, etc.); it won't be cleaned and fixed up (most investor and new homeowner purchased homes are, which feeds local handyman and contractors); and it won't generate a reasonable return on investment for a new landlord allowing them to grown and expand their business (or just find decent returns on savings so they can actually retire someday making room for someone else).

The government seems intent on doing everything possible to prevent the timely clearing of the market. Why it has not RTC's the whole lot and closed up Fannie and Freddie is beyond me...

[bill]

Re: Foreclosures into rentals, they just don't get it. Again!

The government seems intent on doing everything possible to prevent the timely clearing of the market. Why it has not RTC's the whole lot and closed up Fannie and Freddie is beyond me...

Bond holders are guaranteed by taxpayers. No liquidation, only collections enforced to pay bond holders. That means via rent or notes and/or taxpayer funds.
A video link I posted when Hank told Buffet what he did for GSE bond holders, link here.
http://www.itulip.com/forums/showthr...48384#poststop

The above video link is no longer available, try this one.
start video 8:00min
Buffet, Paulson
http://www.youtube.com/watch?v=f4Mei...feature=relmfu

PS:

US Government housing established using securitized fraud to build it out. Now US government has the housing inventory for its population to live in.
Other countries in decline build housing for its population during and after decline.

[sunskyfan]

Re: Foreclosures into rentals, they just don't get it. Again!

Maybe your question is they key. Perhaps they can't clear the market because it would trigger true reconciliation of the failed loans force actual losses that are probably much much larger than they are letting on. They are letting them float. Not to mention, can you imagine Federal Marshals ejecting people out of homes in the media?

[GRG55]

Re: Foreclosures into rentals, they just don't get it. Again!

Bond holders are guaranteed by taxpayers. No liquidation, only collections enforced to pay bond holders. That means via rent or notes and/or taxpayer funds.
A video link I posted when Hank told Buffet what he did for GSE bond holders, link here.
start video 8:00min
Buffet, Paulson
http://www.youtube.com/watch?v=f4Mei...feature=relmfu

PS:

US Government housing established using securitized fraud to build it out. Now US government has the housing inventory for its population to live in.
Other countries in decline build housing for its population during and after decline.

Maybe your question is they key. Perhaps they can't clear the market because it would trigger true reconciliation of the failed loans force actual losses that are probably much much larger than they are letting on. They are letting them float. Not to mention, can you imagine Federal Marshals ejecting people out of homes in the media?

The socialized state of the housing market in the Land of the Free and the Home of the Brave is truly amazing to watch from this outside vantage point. That these same people argue about "socialized medicine" in the very next breath is beyond entertaining...

[sunskyfan]

Re: Foreclosures into rentals, they just don't get it. Again!

The socialized state of the housing market in the Land of the Free and the Home of the Brave is truly amazing to watch from this outside vantage point. That these same people argue about "socialized medicine" in the very next breath is beyond entertaining...

Very true. No one ever considers that the "private health insurance" concept has totally failed as well. You pull both the insurance entities and the government out of health care and health care will become effective, affordable, and available to the most number of people. I would add that if you do the same to the home mortgage industry you would get a better result for all as well ;).

[c1ue]

Re: Foreclosures into rentals, they just don't get it. Again!

You pull both the insurance entities and the government out of health care and health care will become effective, affordable, and available to the most number of people.

Where does this belief arise from?

In every other 1st and 2nd world nation besides the US, the government is intimately involved with health care.

Outside of those who are on Medicare (i.e. taxation to pay for the 65+ segment), the US government is the least involved in health care.

[tallone]

Re: Foreclosures into rentals, they just don't get it. Again!

Where does this belief arise from?

In every other 1st and 2nd world nation besides the US, the government is intimately involved with health care.

Outside of those who are on Medicare (i.e. taxation to pay for the 65+ segment), the US government is the least involved in health care.

I think Susky said to "pull both insurance and government out of health care." Can you imagine if a patient went to the doctor and actually knew what was being charged for the service...not the billable number minus the write down less the 20 %.....???

[c1ue]

Re: Foreclosures into rentals, they just don't get it. Again!

I think Susky said to "pull both insurance and government out of health care." Can you imagine if a patient went to the doctor and actually knew what was being charged for the service...not the billable number minus the write down less the 20 %.....???

But patients in all those 1st and 2nd world nations besides the US know exactly what they are charged.

Health care isn't free even under socialized medicine.

More importantly a key difference is that government in all those 1st and 2nd world nations are involved in health care providing - something which the US does not do at all except for the VA system.

Medicare is purely a health care payment function.