The REOs turned rentals in SoCal in the 90’s happened in Lancaster and Palmdale. However, it was no longer bank owned by the time the renters moved in. The banks did the fix up and hired the property manager to screen applicants and sign leases.
Once a lease was signed and deposit secured, the bank would sell the property to HUD. HUD would then place the property under Section 8 and take over the lease. This happened to about 500 properties in the Antelope Valley and some in San Fernando Valley.
After a year, the neighborhoods protested to the section 8 housing popping up on their blocks and HUD had relocate all the renters and put the properties up for auction. Don’t you kids remember the HUD auctions??
