At the end of August 2011, the government owned roughly 250,000 foreclosed homes, but only 70,000 of those are listed for sale The reason many foreclosures have been stalled so attorneys and federal regulators can investigate whether lenders cut corners and improperly handled thousands of cases.
As result, the Federal Housing Finance Agency is floating an idea to turn these foreclosed single-family homes and condos into rentals. Their reasoning is so they can stabilize home prices.
My thoughts: This is just going to prolong the housing slump. I wish the government would just let the market determine housing prices, and let’s clear out this foreclosed inventory.