Calling All Investors!!!
 The Federal Housing Finance Agency (FHFA) has announced that opportunities to bid on REO properties have opened for qualified investors. Right now investors need to prequalify for an opportunity to bid by filling out a form at on FHFA’s REO Initiative page. What is the agency looking for in REO investors?
It's important to note that REO investors who participate in this rental program will be required to commit to renting the properties for a certain period of time. This means that the investors may not have an opportunity to sell the REOs before the rental period has expired even if an opportunity presents itself. It's also important to note that this new initiative does not replace the bulk of the FHFA's sales which are to individuals willing to occupy the REO property. However, that program is being revamped to make it more effective according to the agency. What does this new program mean for investors eyeing the REO market? Well, if the initiative works as intended, it will relieve some of the housing inventory currently glutting the market. However, this initiative could create a new set of problems by flooding the rental market with an excessive amount of rental properties if not done carefully. REO investors interested in exploring this rental program should do due diligence in determining if they can recover their capital investment in the rental market. For example, will rental prices decrease if a large number of investors rent proprieties in any given locale? And what is the FHFA doing to make sure that their program does not create a new rental crisis?  
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