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VOL. 127 | NO. 40 | Tuesday, February 28, 2012

Gov't Moves to Convert Foreclosures to Rentals

The Associated Press

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WASHINGTON (AP) – The government is looking to sell off some of its stock of homes in foreclosure.

The Federal Housing Finance Agency has control over roughly 250,000 foreclosed homes owned by Fannie Mae. One percent of those homes, or 2,500, will be available for investors to buy and convert into rentals.

Officials say the foreclosure-to-rental program can help reduce credit losses and stabilize home values. Homes in foreclosure sell at a 20 percent discount on average, which can hurt surrounding home values.

Investors can submit applications to purchase properties owned by Fannie in some of the nation's hardest hit metro areas – Atlanta, Chicago, Las Vegas, Phoenix and parts of Florida.

The government rescued Fannie and its sister organization Freddie Mac in September 2008 and has funded them since the financial crisis.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 64 64 16,477
MORTGAGES 72 72 21,504
FORECLOSURE NOTICES 26 26 4,292
BUILDING PERMITS 0 0 39,378
BANKRUPTCIES 69 69 15,611
BUSINESS LICENSES 13 13 5,504
UTILITY CONNECTIONS 84 84 23,657
MARRIAGE LICENSES 37 37 5,072

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