HUD asked for Suggestions What do you think?
Earlier I was reading and interesting article today. Basically explaining how HUD is sitting on over 240,000 REO's and does not know what to do with them since conventional lending will not loan to distressed housing. They simply asked for suggestions on what to do. So hear was my advise I want to know what you guys think of this.
I recommended these be turned into rental homes. This would help accomplish many things such as creating jobs for the blue collar working there would tremendous amount of money that would go in to renovations and this would require professional carpenters, plumbers, electricians, hvac, landscapers, etc... to get everything up to date I recommended the supervision be outsourced to property managers.
And I also recommended that the rental leases on these homes be at lease 5 year leases in exchange for this long term agreement, if the renter is paying on time they have this reported to the credit burial. This way homes are guaranteed to be occupied for several years, renters have motivation to stay in them, inventory is freed up and, renters credit scores increase giving them a better chance to to qualify for a loan. Since HUD does section 8 I suggested that instead of paying there rent to others section 8 tenants be given these rentals homes at a discount rent instead of paying out the money.
In the article they said they had many options to consider but what every the decide they realize that real estate investors are going to be the key to solving this problem. Any other suggestions or opinions I know I am missing many angles to this but I am at a blank.