I heard this rumor at my continuing education class a couple of weeks. HUD maybe considering getting into the property management business this year.
There is a massive wave of foreclosures (aka Shadow Inventory) coming soon as banks let go of millions of properties on the books this year and next.
It would be foolish to flood the market with shadow inventory all at once. It would kill the housing market all over again and cause the cycle to repeat itself. The sensible thing would be to release these properties piece meal.
Which is why I believe HUD would even consider such a thing as property management. It would be an effort for HUD to monetize these properties while holding a flood back from housing market.
Assuming they could even get the logitics in place, do you think this would be a good idea or bad? This program could pay for itself if its run properly. But that's a big IF.
How do you think this idea would pan out?