Bulk REO sales gain additional support

A prominent rental property management firm recently announced its support for plans to dispose of real estate-owned properties currently held by the government and government-sponsored enterprises through bulk sales.

The company responded to the Request for Information from the Federal Housing Finance Agency and other federal agencies, indicating bulk sales to investors who will then convert the distressed housing into rental properties is a reasonable measure.

Fannie Mae, Freddie Mac and the Federal Housing Administration hold more than 200,000 units of distressed housing between them, a number that is expected to grow.

"When considering potential investor partners and strategy, scale and speed-to-market should be critical requirements," said a company representative. He indicated both institutional and private investors may have the capital required, but the logistical challenges involved may be difficult for many to meet.

The recommendation to the Obama administration included a request to maintain an approach that would allow a variety of stakeholders, including nonprofit investors, to take part.

The company also indicated national valuations, assessment, improvement, renter service, property habitability and neighborhood stabilization standards would be beneficial in ensuring the success of the program.