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Wall Street Big Wigs Buying Up Foreclosures

  • March 19, 2012

by UrbanTurf Staff

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Fannie Mae’s plan to fill foreclosed homes with renters is getting some support from Wall Street’s high rollers.

The Wall Street Journal is reporting that a few firms are planning on buying up foreclosed properties from Fannie Mae. Most of the homes involved in this deal are currently filled with renters; the deal will stipulate that investors keep renting out the properties for a few years.

Amherst Securities Group, Paulson & Co. and a fund run by mortgage-bond pioneer Lewis Ranieri, among others, are considering making bids. From The Wall Street Journal:

The sale consists of 2,500 homes divided into eight regional pools, ranging from 572 properties in Atlanta to 99 in Chicago. The total current market value is $320 million, according to an offering document prepared by Credit Suisse, which is advising Fannie.

“We’re investing a lot of capital, a lot of time, with the expectation that this is a very small beginning to a very big movement,” said Sean Dobson, CEO of Amherst. Last summer the firm won 50 properties auctioned by Fannie in Dallas and confirmed that it plans to bid on some of the pools up for auction now.

We’ll see how these bids progress in the coming months.

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This article originally published at http://chicago.urbanturf.com/articles/article/wall_street_big_wigs_buying_up_foreclosures/5304

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