Owning a home won’t become more common but living in one might.
By telling millions of foreclosed FB’s that they cannot buy again for 5 years and making it difficult for investors to qualify for financing, there may be a glut of homes on the market sitting empty, until someone creates an outfit(ala RTC)to start renting these empty stucco boxes, giving lenders a return on investment, pretending that there are no losses to face.
In two or three years the guidelines may gladly overlook a past foreclosure and allow FB’s to purchase again, at lower levels, assuming that they can qualify.
The FNMA threat of not allowing folks to buy again for 5 years is a scare tactic that probably won’t last.
The market will need them desperately to soak up the spilt milk.
The govt has become the biggest mortgage lender, just wait until they become the biggest landlord.
You don’t need to own a house to be able to live in one…
Govt housing from studios to McMansions for all socialist comrades.[/quote]
HLS,
I was thinking the same thing. You could have some entity set up to take all the foreclosed homes and set up a property managment entity and just rent them out.
For the people in houses about to be foreclosed they could write the mortgage loan down to where the market rent could pay for it and reduce the payment to those people to that level. The difference I guess just gets eaten by the public.
