The Federal Housing Finance Agency has announced its plan to launch a pilot program that will sell real estate-owned properties in bulk to investors.
According to the agency's announcement, the program hopes to sell roughly 2,500 properties in Atlanta, Chicago, Las Vegas, Los Angeles, Phoenix and Florida - states with high numbers of forecloses houses during recent years.
"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 REO properties in the marketplace," said FHFA acting director Edward J. DeMarco.
Under the pilot program, investors will be prequalified based on their financial stability, experience with purchasing properties in bulk and ability to resell the properties or convert them into rental units.
While the pilot program is set to only deal with an estimated 2,500 homes across a number of housing markets, if successful, the measure will hopefully be applied to the 122,000 properties currently held by Fannie Mae and 60,000 in Freddie Mac's REO inventory.