I warned on this “lease back” feature to Rt.66 WRT shadow inventory almost a month ago. I wonder why this aspect of the program was not disclosed earlier by the GSE’s?
Submitted by Russell on October 13, 2009 – 9:03am.
I read this yesterday at housing wire. While short sales and deed -in-lieu make for a “graceful” exist for the FB than foreclosure, I don’t see how the latter keeps communities intact.
Maybe the deed in lieu turns into a rent back situation or something like that. Something like rent back or conversion to affordable housing would keep inventory off the market too…so would just not selling it… and these would help society. I am pretty sure a conduit will be found for all this future “shadow inventory”, if the opposite means crashing nominal prices into oblivion. O.k., maybe I’ll be wrong.Just for the record, I am certainly not being bullish just to oppress bears. If the bears are right there is a big upside to that too.Cheaper houses.
