Lawmakers are pressing the Federal Housing Finance Agency, which oversees mortgage financiers Freddie Mac and Fannie Mae, to limit or stop the sale of foreclosed homes to firms that resell them under rent-to-own contracts, or contracts for deed.
In a Senate hearing held May 15 on the future of Fannie Mae and Freddie Mac, FHFA director Melvin Watt promised that his agency would act to limit the sale of nonperforming homes to firms looking to resell through contract for deed.
Some local authorities and regulators are taking legal action against several of these firms, accusing them of engaging in predatory business practices by reselling these often rundown houses “as is” through rent-to-own and other seller-financed transactions, sometimes known as contracts for deed.
Reported May 17, 2017 on www.PaperSourceOnline.com.
Read More: http://www.builderonline.com/money/lawmakers-push-fhfa-to-prevent-sales-of-foreclosed-properties_c.