A Huge Housing Bargain -- but Not for You

[walerosco]

NEW YORK (RealMoney) -- The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors -- vulture funds.

These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.

You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs(GS) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.

In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates

SNIP

As intended, the mass media are playing their part in classic style. Every major newspaper in the U.S. has run articles discussing the plan as a rental conversion, allowing readers to assume that Fannie, Freddie and HUD will be renting the properties directly to families who need housing. And although there is an allowance for these kinds of rentals, it is a minor political facade to the obvious true goal of bulk-sale privatization of these homes

http://www.thestreet.com/story/11224917/1/a-huge-housing-bargain--but-not-for-you.html

[WingDinger]

1. Rehab with wpa

[MedicalAdmin]

2. Squatters. We know how to turn on gas, water, etc.

It's time to take back out homes, our lives and our futures.

And if any of the owners or and of their punk assed bitch enables show up to stop us doing what is right, then just like during the depression when neighbors helped neighbors, then we need to let them know that we know where they live too.

Do the right thing or pay the price is the message that needs to be sent. It would be nice if it could be said nicely but I fear that blood will need to be spilled first.

[geckosfeet]

3. If yiu really want to get in on the feeding frenzy buy some real estate funds.

[ixion]

4. This was the plan behind the so-called 'Ownership Society'

in my opinion.

[blkmusclmachine]

8. Bingo!

+1

[bhikkhu]

5. Main problem - the country is full of "bargain housing" nowadays

and something like 30% of the houses on the market are foreclosures. Its not a good market to have houses you need to sell, and unsold, unoccupied houses have a decay rate attached to them - not too many years before renovation costs meet market value.

...so as far as the government's position, its a matter of deciding whether to get in deeper (establish an agency to renovate, sell or rent the housing - a huge and complicated endeavor), or sell them off in bulk and take some losses. Neither are very good options, but then sitting on the portfolio isn't a good option either. Perhaps it all goes toward the argument that Fannie and Freddie weren't such a good idea, or that loan standards should have been kept higher.

Its a little late to judge now, but plenty of prior presidents had their hand and their good intentions in the current mess.

[handmade34]

6. "request for information"

http://www.fhfa.gov/webfiles/22366/RFIFinal081011.pdf

due by September 15th... doesn't give anyone (except insiders) much time

[OwnedByFerrets]

7. Wow, just wow.

[bvar22]

9. All according to plan, my Pretties.

All according to plan.
I'm glad we never bought in to that "Refinance and get FREE MONEY" scam.



Cherish your memories, SUCKERS!
because we're TAKING everything else!
Hahahahahahaha!



Solidarity!



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