Market Conditions in Denver>Question Details

Charles Moore, Real Estate Pro in 80211

Has anyone ever wondered why the government has not gotten into the business of buying, fixing up, and renting foreclosures?

Asked by Charles Moore, 80211 Sat Mar 13, 2010

They are trying to steer markets anyway with all the stimulus money. Seems that would be an ideal way to use stimulus money and create their perception of a supply and demand equilibrium in the housing market. When the leases expire they can determine if the property should be leaked back into the market. Should create some jobs as well fixing up and managing all those properties whether the government manages them or farms the task out to local property management companies.

Anyone have a guess at what it would cost to buy all the properties down to "equilibrium"?

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If the government distributed the approved stimulus money evenly to every citizen, most could pay their homes off and there would be fewer foreclosures. But how would that help line their pockets, or buy unpopular votes?
1 vote Thank Flag Link Sat Mar 13, 2010
Do NOT give Barney Frank any more ideas.

Actually, one of the GSE's was going to do that. Let the mortgage holder default and rent the house for market rates not mortgage rates.

Hey, the roof leaks, now the government has to fix it. Hey, the leaking water heater they have to replace. Hey, all kinds of problems here I can get the government to fix for free...

It is really a losing proposition. A bad idea, Interfering with the free markets and a bad idea.

It would cost far to much. Allow the markets to find their own level. It will happen the government can only slow it down for awhile.
0 votes Thank Flag Link Sat Mar 13, 2010
Charles-
I DO know that the city of Wheatridge are offering no down loans to home buyers/contractors to use funds to fix up properties and increase the neighobrhoods value.This program is called Wheatridge 2020.
Kimberly Ryan
Keller Wiliams Realty success
303-523-8333
Kimberlyatkeller@aol.com
0 votes Thank Flag Link Sat Mar 13, 2010
Actually, Denver and Colorado are in that business. There was stimulous money from the federal government for the Neighborhood Stabilization Program. See http://www.colorado.gov/cs/Satellite/GovRitter/GOVR/1230640342651
0 votes Thank Flag Link Sat Mar 13, 2010
Joetta is on the right trail. All that stimulus money that was literally wasted; could have bridged the gap for everyone. But government continues to take our money and dole it out where THEY see fit. Well, I for one, am sick of how "they see fit". Can't wait for November elections! I will not vote for any Democrats, or Republicans. Only Independent and Libertarian.

Don't get me started...you know how I get. :)

Leah Kelley
Real Estate...Your Way
0 votes Thank Flag Link Sat Mar 13, 2010
Why would you want this if the Government can not even handle the things they have to now?
What a task that would be. Where is the Government going to get this "Billions" of dollars to do this?
This sounds like a Bad Idea. What do you mean buy the Government is "steering" markets?
I feel like there are better Ideas to fix these problems. Brian
0 votes Thank Flag Link Sat Mar 13, 2010
The U.S. economy is in a crisis. We are in a deep recession. The last thing the government needs is to become a homeowner of mass quantities of homes and a leasing company. I assume your question is meant to create controversy....
0 votes Thank Flag Link Sat Mar 13, 2010
Charles: The main thing holding back the supply of Foreclosures is that there is a moratorium (senate bill X2-7) on the filing of Foreclosures on certain types of loans.... For instance, stated income, negative amortization, and other loan programs that are not being offered now actually have a moratorium against any foreclosure action until 2011.

Therefore, Notices of Default are being filed but then no further action can take place. This leaves hoards of houses vacant or with occupants paying no payments and because title is still in the origional borrowers name they cannot be sold. Unless of course, the origional borrower, who is on title, takes action themselves to do a deed in lieu of foreclosure or a short sale.

Also, banks were never set up to manage and sell homes, only to lend on them
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Sat Mar 13, 2010
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