[quote=flu]
I am more curious if they are going to come up with some more creative schemes to offer rent to own plans for subprime people that can’t own otherwise. Seems like if we are expecting a flat resale market in those areas, it would be a way to offer ownership to those who cant under traditional ways and increase profits at the same time.[/quote]
I doubt it. I think they’ll just keep securitizing the under performing assets and dump them on some pension fund like CalPRES. What those eventual owner do with the assets if prices fall or the rental market softens, who knows. If you’re CalPRES you probably just hold on, if your some small hedge fund holding this junk maybe you liquidate or you get liquidated.
At some point there will likely be a negative consequence of the mad dash to gobble up rental properties that we saw the previous 2 years but knows when and how it play out. We’ve never seen a huge institutional investor push into residential real estate before.
