Saturday, February 25, 2012

Realtors Don't Like Bulk Foreclosure Sales Either

Today, the president of the California Association of Realtors, published an op-ed in the Sacramento Bee arguing against bulk sale of foreclosure homes to investors.  This is something I raised concerns about when it was first proposed in August 2011, and I have been surprised there has not been more debate about the plan.

It isn't that often that I agree on policy with Realtor Associations, but I do on this one - at least until I can see a stronger argument for the social and economic gain from the government facillitating the sale of discounted residential real estate to hedge funds. 

Of course, the Realtors' motives are at least partially self-serving, no commissions for them on these bulk REO sales.  That may be part of the governments argument for doing this, increasing loss recovery by reducing transactions costs.

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