Government May Sell Foreclosures to Investors

Washington, DC, Jan. 9, 2012 -- The federal government is close to announcing a pilot program to sell government-owned foreclosures in bulk to investors as rentals, according to a CNBC story.

There currently are about a quarter of a million foreclosed properties on the books of Fannie Mae, Freddie Mac, and the Federal Housing Administration, and more are coming.

Late-stage delinquencies still in the pipeline number close to 2 million, according to a report from Lender Processing Services. Foreclosure starts outnumber foreclosure sales by two to one.

According to the CNBC story, the Treasury Department, Federal Reserve, HUD and other agencies are engaged in a collaborative effort to figure out a way to keep these properties from sitting empty.

They are working on what the market potential is, what pricing would be, how government can partner with private investors, and who has the operational experience to manage so many properties.