As part of the government’s Real-Estate Owned (REO) pilot program, Fannie Mae has put nearly 2,500 foreclosures, including properties in Los Angeles, up for sale as rental units. Pre-qualified investors will be able to bid on these homes, of which only 429 are vacant according to DSNews.com. The majority of those 2,500 properties are located in Los Angeles and Riverside, making up 23% of the units.
The idea behind the government’s REO initiative is that the rental market is in high demand, and turning those foreclosures into rentals would stabilize neighborhoods and the reduce number of foreclosures on the market.
Investors interested in the pilot program can visit the FHFA REO Initiative page of the Federal Housing Finance Agency website.