A Huge Housing Bargain — but Not for You
August 24th, 2011Via: The Street:
The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.
These homes, which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value.
You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.
In the process, these investors will instantaneously become the largest improved real estate owners and landlords in the world. The U.S. taxpayer will get pennies on the dollar for these homes and then be allowed to rent them back at market rates.
Research Credit: Pookie
Perhaps these investors ought to be Japanese.
This seems strange to me. This is real estate that is literally falling apart without home-owner maintenance and upkeep (have you ever been in a contemporary shittily built house that hasn’t been occupied for even 3 or 4 weeks? It’s disgusting smelling). They’re losing value by the month. Now granted these firms will want to re-sell them at cheap but profitable prices, but how will the potential buyers get the loan to purchase? From the sellers themselves, likely. But no one wants to lend, because all the idiot borrowers are tapped out.
Housing was over-built. Now it should disintegrate. What else would anyone want with shittily built houses already crumbling into decay?