Foreclosure Properties to Become Rental Homes

It’s basic economics: when supply is high, prices drop.

That’s what’s still happening in the housing market. The massive inventory of foreclosure properties has driven home prices down all across the U.S. It’s good news for buyers, but tough on sellers who are hoping to make as much money as possible on the sale of their homes.

In an effort to speed the reduction of housing inventory across the country in the hopes of raising property values, The U.S. Treasury Department and U.S. Department of Housing and Urban Development announced just last week that they are accepting proposals for a new way to offload the thousands of foreclosures that are now on their books.

The “new way” is something that many other industries have been doing for a long time: selling in bulk.

The idea is to sell off multiple properties at once to investors who agree to turn the properties into rentals. The government hasn’t announced yet whether the investors who purchase this way will get a bulk price, but people are speculating that that will be the case.

By selling off properties in bulk and then turning them into rentals instead of reselling them, the government hopes to get these houses off the market and keep it that way for long enough to stabilize housing prices and bring property values back up. It also will hopefully provide more affordable housing as well as excellent opportunities for real estate investors to grow a long term, sustainable source of income.

Learn more about the Charlotte real estate market: direct your questions to Leigh brown, the best Charlotte agent and best Concord agent. She knows everything from A to Z about Charlotte MLS, Charlotte homes for sale, short sales in Charlotte, foreclosures in Charlotte, and so much more. Pick up the phone and give us a ring!