Fannie To Sell Distressed Homes to Investors

Washington, DC, Feb. 28, 2012 -- Fannie Mae said it will move forward with plans to sell nearly 2,500 foreclosed properties to investors in a pilot program.

Fannie Mae will offer the properties to investors in bulk and require those investors to rent them out.

The government-back company is starting off by selling homes that were already rented out when it acquired the property through foreclosure.

Investors and nonprofit groups will be able to bid on homes in eight locations.

It isn’t clear yet whether Fannie will sell the properties outright, or whether the mortgage-finance company will keep a stake in a joint venture.