We can find NOTHING that the government has done, or even encouraged the lenders to do, with the small investors predicament with his life savings in several rental homes.
Instead of modifying loans, or refinancing loans arrangements, to ease the crunch and let them survive a down market, they force the rental owner into bankruptcy or walk away, and dump and add his homes into the over stocked market.
Government policy not helping with problem.
Government "no refinancing for investors allowed" policy, (no matter how good your credit)
is "the Problem."
Stuck with 7% loans. Down Rental Market.
New Big Boy Competitor, buys Foreclosure half price, half price payment and pays 5%.
The small home rental investor should be helped to keep his present homes and buy additional homes at the current low rates so he can average out. Government freeze out on both.
Help to become economically viable, in a down market.
These are thrifty solid citizens who have, by now, used up all their assets to try to preserve a life time of savings invested in local real estate market. Tried to do the right thing......left NO OPTION.
He is instead forced out of refinancing and continues to Pay 7%.
Big Rental Investor who still has money buys house across the street for 50% off, Gets 5% loan, and can rent for peanuts.
Small investor forced to walkaway, because he has been bled dry, can not rent for even close to mortgage amount with that kind of current competition. Can not keep making up deficit.
Many have sold paid for properties, used up all savings, and borrowed to make up deficit.
Got you not even a "thanks".
No sense in continuing to do so.
NO LIGHT AT THE END OF THE TUNNEL.
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