Rentals of foreclosed properties

“Wall Street’s Rental Scheme Is Blowing Up In Its Face” –

Really they have no choice but to rent properties out, selling foreclosed properties at too high a rate will precipitate another crisis and reduce the value of their collateral in all other mortgages.

There will be bumps as they move to more professional management.

We have to be careful about the statistics shown though.  A national 4.1 % vacancy rate is irrelevant because the foreclosures aren’t evenly distributed.

The areas with higher foreclosure rates have problems and are more likely to have weak demand.  In a lot of those places the mortgages were “underwater”.  So a higher vacancy rate in the same location later is not a surprise.


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