Renting out Foreclosures

Posted on Jul 26, 2011

There is talk of the Obama Administration considering a plan that would not only take a large portion of the foreclosed homes off the market, but will provide more homes available to rent. This move is in an effort to prevent the drop of home values, according to the Wall Street Journal.

Foreclosed homes are typically sold at a lower price, which lowers the national home values. Although this move could put lenders as well as the government in the unknown role of being landlords, the thought of removing some of the foreclosed homes off the market is "worth looking at", according to Ben Bernanke, Federal Reserve Chairman.

Lenders would be able to cover the costs of upholding the properties until such time as the homes can be resold and the market stabilizes itself.