Do you think you know how to solve the housing crisis? That’s great, because if you do the Federal Housing Finance Agency, or FHFA, is seeking input on creative solutions to get foreclosed homes off the market and has joined with the U.S. Department of Housing and Urban Development, or HUD, to issue a request for information.
The glut of foreclosed single-family homes owned by Fannie Mae, Freddie Mac and the Federal Housing Administration account for up to one third of the homes sold each month and is dragging down home prices, raising the concern that more homeowners in distressed markets will be forced to foreclose. For this reason, the FHFA is seeking input on how to reduce the number of foreclosed properties and stabilize the market.
The FHFA wishes to drop the number of homes owned by Fannie Mae, Freddie Mac and FHA in a cost-effective manner, reduce average loan loss rates to Fannie, Freddie and FHA relative to individual distressed property sales, address property rehab needs, respond to the economic and real estate conditions in specific geographies, and assist in community and home price stabilization efforts.
The Federal Housing Finance Agency would like people to suggest creative approaches to determine the appropriate disposition strategy for individual properties, whether “for sale” or “for rent”, or, in certain instances, demolition.
Selling the houses to investors who will rent them is a solution that has been considered, but other solutions are also needed, such as ways to turn renters into owners and how to make the rental market more affordable. If you think you have the right idea, get your ideas submitted no later than September 15, 2011. If you want to see a 6-step plan that would resolve the housing crisis immediately, check out the one written by the author of this article.
Joe Manausa is a 20+ year veteran of the real estate business and has written a detailed plan to solve the housing crisis at the Tallahassee Real Estate Website