Rental Shortage needs to be tapped!

The real estate market is inside out in many parts of the country. People are leaving their foreclosed homes and need a place to live. Rental rates are raising due to demand. The Treasury and Federal Reserve must set up a Fannie and Freddie package for investors with down payments. This will allow people to use their credit and down payment money to buy these foreclosed homes, get them off the market and make property available to qualified renters.

The credit worthy buyers are not the foreclosed persons. They can only rent now. You need a credit worthy buyer with capital to take the inventory. This will provide rental housing, which is needed and help solve our over all problem.

To understand the problem, it is dynamic, as it goes through different stages, the needs and solution change. The combination of this type of program, with the same 4.5% loans from government back sources and the 4.5% program for user buyers, will stem the drop in prices and turn this around.

There is still a problem for qualified user buyers to get loans. Along with declining appraisals. This will not stop until enough of the properly applied resources are brought to bare. Fannie and Freddie must be allowed to be this conduit to get this done.

New home sales are down and rightfully so while the weakness in the markets continue. Many jobs are lost and unemployment is rising. As soon as this get done people can go back to work. The buyers of these homes will do fix ups and help the economy. Remember the most important thing to capitalism is capital. The capital must be applied, no differently then how troops are strategically placed in a battle field.

Let's get this battle over and go on to a peaceful time.

Richard

View my new homes for sale