The Federal Housing Finance Agency (FHFA) recently announced that the winning bidders in a real estate owned (REO) pilot initiative, REO to Rental program, have been chosen and transactions are expected to close soon. The REO Initiative, which was launched by FHFA in late February and developed in conjunction with the U.S. Department of the Treasury, U.S. Department of Housing and Urban Development, Federal Deposit Insurance Corporation, the Federal Reserve System, Fannie Mae and Freddie Mac, will allow these eligible investors to purchase approximately 2,500 single-family Fannie Mae foreclosed properties.
Investors were selected after a rigorous pre-qualification process in which bidders were evaluated on the basis of several factors, including financial strength, asset management experience, property management expertise and experience in the geographic area. These investors are now able to purchase these properties under the stipulation that the properties must be rented for a specified number of years. The rental period is meant to provide relief to local housing markets that continue to be depressed by large volumes of foreclosed properties and those that are in need of rental housing.
FHFA said the names of the successful bidders will be released once the deals close, expected early in the third quarter.
Click here to read the press release.
