Mortgage Daily Logo

First REO-to-Rental Transaction Closes

Foreclosure

Mortgage Daily

                                                 January 10, 2012

A program that converts foreclosed properties owned by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. into rental properties through the sale to approved investors has generated its first transaction.

In an effort to unload real-estate-owned properties at Fannie Mae and Freddie Mac, the Department of Housing and Urban Development, the Department of the Treasury and the Federal Housing Finance Agency proposed in August 2011 to convert REOs into rentals.

This past February, a pilot program was launched where pre-qualified investors submitted applications to purchase pools of distressed Fannie Mae assets that included nearly 2,500 properties.

In July, winning bidders were selected and the first transactions were set to close.

On Monday, the FHFA announced that Pacifica Companies LLC purchased 699 REOs owned by Fannie. Each of the properties is located in Florida.

The announcement indicated that all properties were sold near or above market value.

“FHFA will announce the winning investors for properties in other areas upon closing of the transactions in the coming weeks,” today’s statement said.

The regulator noted that 541 REOs in Atlanta originally included in the planned sales were not awarded. Instead, the Atlanta properties will be evaluated for disposition through Fannie’s retail sales operation or through future structured transactions.

Related Posts

What To Expect When Buying a Foreclosed House

What To Expect When Buying a Foreclosed House

When scrolling through the various real estate websites and apps, you may find properties marked “in foreclosure”. Often the prices on these homes are quite low and can even seem too good to be true. So, is a foreclosed house really worth considering? As with anything...

1 Billboard Inside Wilmington, North Carolina

1 Billboard Inside Wilmington, North Carolina

A delinquent borrower has paid for a billboard in Wilmington, North Carolina, in his effort to avoid a foreclosure on his delinquent loan with SunTrust Mortgage Inc. Scott Griffin had three loans with the Richmond, Virginia-based company as of 2007. One of the loans...

1 Billboard Inside Wilmington, North Carolina

Overcoming Statute of Limitations in Foreclosures

Challenges to mortgage lenders and servicers' right to foreclose based on the expiration of the statute of limitations are rapidly increasing in the Pacific Northwest and Southwest regions. Consumer attorneys are now representing borrowers in a winner-take-all bid to...

1 Billboard Inside Wilmington, North Carolina

Couple Claims Victory in 10-Year-Old Foreclosure

A Sound Beach, New York, couple fighting foreclosure for nearly 10 years "can finally close that chapter of their lives" now that their lender has missed court deadlines to continue the legal battle, the couple's lawyer said Tuesday. Fred and Theresa Tovar's mortgage...

1 Billboard Inside Wilmington, North Carolina

GSEs Announce Annual Foreclosure Moratorium

In what has become an annual tradition, the government-sponsored enterprises are suspending foreclosure evictions during the holiday season. The Federal National Mortgage Association issued a statement Monday indicating it will suspend evictions from Dec. 19 through...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam