Deutsche Bank Among Firms Giving U.S. Plans to Rent Seized Homes

[dipsydoodle]

Dec. 27 (Bloomberg) -- Fortress Investment Group LLC and Deutsche Bank AG, whose executives played roles in the housing bubble, are among the hundreds of firms that responded to a U.S. government request for proposals to rent out foreclosed homes.

The Federal Housing Finance Agency asked for ideas as Fannie Mae and Freddie Mac, the mortgage companies seized by the government in 2008, seek to reduce losses, stabilize neighborhoods and support housing values by turning into rentals a portion of the more than 180,000 repossessed homes in their inventory. The submissions were due by Sept. 15.

Carrington Holding Co., Barclays Capital Inc., Neuberger Berman Group LLC, Ranieri Partners LLC and UBS AG also were among the financial and investment companies that responded to the FHFA, according to a list of 439 proposals. The agency released the names in response to a Freedom of Information Act request filed by Bloomberg News.

"We're obviously big proponents of this program," Rick Sharga, executive vice president of Carrington, said in a telephone interview from his office in Santa Ana, California. "We think it meets a market need."

http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/27/bloomberg_articlesLWOHK06K50XV.DTL

[lunatica]

1. So the banks are looking for buyers of large tracts of their foreclosed homes

So the buyers can become landlords. The realtors will buy these homes at a huge discount since the new buyers will supposedly renovate and fix the houses. I lived in houses that were owned by realtors who like to turn a profit very quickly. Within months of buying the house they sold it. They sold the property to another realtor who evicted us so he could raise the rent for the next renter and make his profit in rents and in a few months or a year to sell the property at a profit.

It happened to us twice so we decided to buy a house instead of renting and being at the mercy of the landlords either evicting us or raising the rent every damn time a new owner showed up. It was a scam. As a result I think of realtors being the same as car salesmen. In it for themselves and each other.

It's not a stretch see this happening again.

[Ilsa]

2. I haven't finished reading the article, but this needs kicking up

for greater exposure of corporate thievery and followup profiteering.

[elleng]

4. Yes. Kicked.

[elleng]

3. "We think it meets a market need."

Indeed.

[dipsydoodle]

5. I can see what's coming

rent the houses out, sell the income stream insured against default................

[Ilsa]

6. Oh God, AIG all over again. nt

[donco]

7. HHmm…wonder what

this will do to the rental market?

[elleng]

8. Might normalize it, or am I being optimistic?

[donco]

9. I live in

the St.Louis area and rents seem to be pretty cheap here.At least it seems like that to me,my oldest son just rented an apartment(in a three year old complex) for what seems to me, a pretty reasonable price.