U.S. to sell rental properties in bulk

WASHINGTON, Feb. 29 (UPI) -- U.S. finance regulators said they were ready to sell nearly 2,500 rental properties in foreclosure-ravaged neighborhoods.

The Federal Housing Finance Agency, which regulates the nation's largest mortgage brokers, the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association said the properties available are in Chicago, Atlanta, Phoenix, Las Vegas, Los Angeles and in three neighborhoods in Florida, CNNMoney reported Wednesday.

The foreclosed properties are to be sold in bulk, in packages that range from 99 rental units in Chicago to 572 in Atlanta -- the properties including multi-apartment units to one-family homes.

Bidders will have to prove they have strong connections to the neighborhoods, financial stability and experience in property management. They will also be obligated to keep current tenants in place until their current leases expire.

"This is another important milestone in our initiative designed to reduce taxpayer losses, stabilize neighborhoods and home values, shift to more private management of properties, and reduce the supply of (lender-owned) properties in the marketplace," FHFA acting director Edward DeMarco.

Regulators said the program will cut down on vacant properties, which bring down the value of neighboring homes.

"We believe that this initiative holds promise for providing support to local neighborhoods that were especially hard hit by the housing crisis and will help meet the rising demand for rental housing in many communities," said Michael Stegman, a housing finance expert at the Treasury Department.

The FHFA did not say when the first sales would take place, but it is expected that evaluating bids could take several months.