Woodland Hills, California (PRWEB) November 19, 2012
In response to Fannie Mae’s recent evaluation of the pilot “REO to Rentals” program earlier in November, Eli Tene, Principal and Managing Director of the Peak entities has applauded halt of the bulk sales of REO properties to investors in favor of a longer-term short sale alternative by the agency. New short sales guidelines implemented as of November 1st by the GSEs should present more appropriate solutions to solving the current housing dilemma. These guidelines will allow more borrowers the option to short sell to avoid foreclosure. This will in turn slow the flow of REOs back to Freddie Mac and Fannie Mae, helping to further remove government involvement and free up more housing inventory for the marketplace.
Investment home sales accounted for nearly a third of all existing-home sales last year, and this has underscored the importance of limiting the GSEs use of real estate owned (REO) bulk sales. “With available inventory already at historic lows, bulk sales of REOs for rental conversion could constrain housing supply even more by excluding the average buyer, a critical component needed to continue the recovery in local markets,” states Tene. “Liquidation of distressed assets instead through the short sale process allows for a natural healing of markets the shock of bulk sales might preclude.”
Tene says that the Peak entitles has long been a proponent of short sales, long before it gained favor with lenders. He adds that short sales may ultimately prove to be the best prescription for addressing looming foreclosures following the previous trend of bulk REO sales, which adversely impacts overall inventory.
As a leading authority in the real estate industry, The Peak Corporate Network entities provide a full array of comprehensive real estate services nationwide including brokerage services, mortgage financing, loan servicing, escrow services, short sales, foreclosure processing and 1031 exchange. For more information, visit http://www.peakcorp.com.
The Peak Corporate Network is a brand represents a group of related separate legal entities, each providing its unique set of real estate services.