Fed Chairman Ben Bernanke and other Fed officials have said that with home prices continuing to fall and rents rising, it makes sense for some foreclosed homes to be converted into rentals. Demand for rentals has grown since the housing meltdown. ------------------ I wonder how this works out.Will a tax write off on a failed rental be larger than the loss on a foreclosed home? Who pays the taxes on a home in foreclosure as opposed to who pays the taxes on a rental property. Local municpalties need revenue and it's not going to happen with homes in forclosure. I wonder what the value is of an empty rental vs a foreclosre.
A tax lien is filed against the property and is either paid by the beneficiary (note holder) or the new owner when it is purchased in a trustee sale. The property taxes are not simply written off.
Yes, there can be 12 recent immigrants renting that 4-bedroom, foreclosed house in YOUR "prosperous" neighborhood. :eek:
Gee if Fannie & Freddie end up with stacks of foreclosed homes. . . well heck there's a great place to put some homeless people. Coming son to your neighborhood.