This is why the banks and the Govt. will not help fix the mortgage crisis. They are now set to move
in and take ownership. I like how the banks and the Fed. Govt found a way to deal with all those distressed properties.
"The Federal Reserve set out new polices for banks that decide to rent out foreclosed homes, endorsing a strategy for managing the huge number of distressed properties that have piled up during the housing bust.
The central bank said in a six-page policy statement Thursday that the Fed’s regulations permit the rental of foreclosed properties to tenants “in light of the extraordinary market conditions that currently prevail.” The policy clarified that banks that would otherwise be required to sell off the properties more quickly can turn to rental as a strategy.
Banks can do so “without having to demonstrate continuous active marketing of the property provided that suitable policies and procedures are followed,” the central bank said. The shift to rentals is a significant change in the way banks deal with properties that fall into foreclosure – if loan assistance programs don’t work."http://blogs.wsj.com/developments/2012/04/05/fed-blesses-banks-foreclosure-rental-approach/