Fed Blesses Banks’ Foreclosure-Rental Approach
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.
Federal Reserve Chairman Ben Bernanke and other central bank officials have spoken publicly about the need to encourage banks to rent out foreclosures. “With home prices falling and rents rising, it could make sense in some markets to turn some of the foreclosed homes into rental properties,” Mr. Bernanke said in a February speech.
Rest from the WSJ here…
Full policy statement from the FED below…
~
4closureFraud.org
~
Federal Reserve Policy Statement on Rental of Residential Other Real Estate Owned Properties
So now the banks will compete with some advantage with private renters They will foreclose (steal) rental properties and then make the rent income themselves instead of private entities or investors, another incentive for banks to foreclose on properties.
Banks can barely bank…how in the Hell do they think this is going to go well?!
So, the bank is going to be given a free license to swipe our homes that they can’t prove they own – and they’re going to try a hand at playing landlord. Unreal.
How many people know the relationship between GMAC and Trammel Crow Services who share the same building, the GMAC Mortage payment center at 3451 Hammond Avenue in Waterloo, Iowa.
For those who don’t know who Trammel Crow is, they are the biggest aquirer and developer developer of land in America and builder of housing and commercial properties, like apartments and shopping malls and more.
A computer search shows they are the biggest LANDLORD in America and own much in other parts of the world also. They also brag of being the most profitable company in the land. Easy to believe considering they are in the same house with a foreclosure king like GMAC who will go to great lengths to forclose on a property they want to possess, one who will throw up every roadblock they can think of against the property owner who honestly deals with them trying to keep their property as if they (GMAC) were really the owners of said property to begin with.
I have relatives who are in a death grip with those people over a loan they got from a bank to improve their home of many years. GMAC purchased that loan from the bank who issued it. GMAC has tried in every way to stop their refinancing the loan with another loan company and forclose while admitting they want the property, not repayment of the loan. This concerns property of sizeable acerage in a prime location enough to build a very profitable development.
This is a case of the rich and mighty trying to steal from someone who has something of value they want but don’t want to buy in an honerable business transaction where they have to pay the true value of the property
.
I can not find any provision for Banks Leasing REAL PROPERTY in this code.
12 CFR Chapter II, Subchapter A – BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
http://www.law.cornell.edu/cfr/text/12/chapter-II/subchapter-A
This is such a foolish idea. ‘It demonstrates Bernanke’s failure to understand the long term negative impact of turning foreclosures into rental property, allowing banks, Fannie and Freddie to become slumlords. We are empowering banks to continue fleecing tenants and investors. Remember banks never had any skin in the game. They originated loans and sold them to investor banks for repackaging. The are now slurping up houses in short sales, avoiding the foreclosure procedure that might expose inaccuracies in the paperwork. Investors (or taxpayers) will continue to take the hit! Can you imagine getting these houses repaired or managed long term on the scale they are talking about. Bank customer service reps could not even find housing paperwork if it was on a toilet roll!
I manage rental property and it is nothing but a headache. I have one tenant who calls EVERY month about rent time and has a dozen things wrong with his house. He never pays on time. He never fixes anything, never decorates or does anything constructive to preserve or beautify the place he calls home. He calls and the property owner has to fork over money for repairs. Thus are the habits of permanent tenants as opposed to homeowners.
Okay, modifying loans is anathema. Homeowners could at least delude themselves into thinking of their abode as their own, despite the bank owning it 100%. It is psychological, homeowners take better care of their homes.or at least when they think they own the home.
But NO.
Bernanke, the banks and Washington prefers turn the nations foreclosures into government or Wall Street owned public housing creating generations of renters who have lost an anchor on the American dream, turned into renters in a foolish experiment that heaps insult atop fraud.
Bernanke ought to know better. He studied the great depression.
I agree 100%. This is just another way of letting the crooks in banking off the hook for commiting fraud and allowing them to realize their dream of becomming the landlords of the American people who fell on hard times by loss of jobs or inadaquate income.