While a number of real estate experts and government officials believe the sale of real estate-owned properties to investors for conversion to rentals will substantially aid the market, CNBC reports some analysts disagree.
Mortgage analyst Mark Hanson told the news source he thinks having foreclosed houses owned by the government purchased by owner-occupants and investors for the purpose of living in or re-selling the homes may be a better option than making them new rental properties.
"People are brainwashed to think foreclosures are a bad thing for the housing market," said Hanson. "Perhaps four years ago when a million loans all went into default and foreclosure at the same time but not today. Today, [first-time homebuyers] and investors - with an insatiable appetite for foreclosures, REO resales and short sales - are the bedrock of this housing market."
Additionally, Dan Oppenheim of Credit Suisse expressed to CNBC that foreclosures are being met with generally high demand from investors and consumers, thus lessening the need for government intervention in resolving the housing market's woes.
However, the Federal Housing Finance Agency maintains this REO conversion program should help stabilize the real estate market and help meet the growing demand for rentals nationwide.