Bulk Sales of Distressed Properties
Bulk Sales of Distressed Properties
Last month, at the Board of Directors’ meetings in Indian Wells, many REALTORS® expressed concern over a proposal by the Federal Housing Finance Agency, Dept. of Treasury, and HUD to sell large blocks of Fannie Mae- and Freddie Mac-owned foreclosed homes to large investors.
A pilot program is expected to be announced, and Southern California is an area being considered. While the program may be beneficial in some parts of the country where REO inventory is high, it would not be favorable in California, where housing inventory is extremely low and demand is high, even in the state’s hardest hit areas.
REOs in California are getting multiple offers at top dollar and usually closing within 60 days on average. C.A.R has expressed concern with California Congressional members and has been working with NAR to ensure that our voice is heard. C.A.R. will be meeting with the FHFA and FHA in Washington, D.C., at the end of this month to determine how they can assist the housing regulators in the disposition of REOs.
