According to an Associated Press article, the Federal Government through the Federal Housing Finance Agency is now collecting investor opinions on whether and how to begin converting the approximately 248,000 federally owned homes into rental properties.
I have a couple of issues with this. The first being that the Federal Government is, AGAIN, figuring out another way to manipulate with the financial markets. This time it will be manipulating rental incomes and housing prices. It is like the powers that be have not yet figured out that the market does best when nobody is manipulating it. The federal government has, apparently, not yet realized that the housing bubble was due to government programs and incentives designed to make Americans purchase homes. So, now it is messing with it again with the result that rental prices will go down for everyone. While this may sound like a good thing, for landlords who are making their mortgage payment on properties people are living in, it is terrible news. This action may drive those landlords that have been successful in recent years into bankruptcy and foreclosures.
The next issue that comes to mind is that if this program goes into effect, it will just be another source of corruption and profit from those that would be in positions of power, such as the investors that they are collecting the opinions from. It seems like the Federal Government is trying to allow those that have already profited several times through this economic crises, like the banking institutions, to profit again.
Thank you for taking the time to read this article by Phoenix, Arizona bankruptcy attorney, Glenn Roethler. The views expressed in this article are solely his own and do not represent those of everyone at Greeves, Price & Roethler, PLC.