C.A.R. President LeFrancis Arnold writes an opinion piece in the Sacramento Bee on why bulk sales are a bad idea in California.
“Consider the federal government's proposal to rapidly and dramatically reduce the supply of newly foreclosed homes coming onto the market from Fannie Mae, Freddie Mac and the Federal Housing Administration through the bulk sale of foreclosed homes to Wall Street investors.
On the surface, it's a well-intentioned idea – and an experiment that may even prove to be a reasonable solution in states where there is a huge inventory of unsold foreclosures.
However, it's a terrible idea for most California homeowners, small investors, landlords and property managers, and an even worse idea for taxpayers. Unlike Detroit or Las Vegas, where entire neighborhoods of foreclosed homes sit empty month after month, bank-owned homes in most California communities already are closing in an average of only 60 days – and often above the list price – without government intervention. So strong are sales of foreclosures in our state that the overall inventory of properties has fallen to levels considered low even in a normal real estate market.”
