Ben Bernanke, the Federal Reserve Chairman, recently released an opinion outlining his support for a solution to the rising number of vacant foreclosure homes across the nation: converting them to rental units. This would be an interesting issue for Jacksonville Foreclosure Attorneys and their clients.
The trend is clear: the demand for home-ownership is very low, while demand for rental properties is on the rise. But transitioning foreclosed homes into rentals is difficult to do on a large scale. Small entrepreneurs typically may buy several foreclosure homes and rent them out. However, large-scale rental companies have refrained from purchasing foreclosed homes because the homes are often not adjacent to one another but spread throughout a city.
Financing is also a problem. While financing for multi-family rental units is available at a low rate, financing for single-family rentals is significantly higher. This means that those who have the money to purchase single-family homes as rentals do not have much of an incentive to do so. It makes more financial sense to develop multi-family units instead.
But large developers aren't the only ones who could benefit from renting out foreclosure homes. Some people facing foreclosure, or who are underwater on their mortgage, should consider a short sale -- selling their home to an investor who then rents the home. There are numerous options available to those facing foreclosure. If you are unsure of your options or would like to speak with someone who can help you, contact a Jacksonville Foreclosure Attorney.
