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C.A.R. Announces Support for Bill to Prevent REO Initiative in California

When it comes to handling foreclosure inventory, the ""CALIFORNIA ASSOCIATION OF REALTORS"":http://www.car.org/ (C.A.R.) has made it clear it does not see the need for government intervention in its state.

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The association recently announced its support for California Congressmen Gary Miller (R-Brea) and seven California lawmakers for introducing legislation that calls for the Federal Housing Finance Agency (FHFA) to halt its plan to sell Fannie Mae REO properties to institutional investors through bulk sales in California.

The bill to stop the program is known as H.R. 5823, or the ""Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of 2012.""

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""C.A.R. applauds these California representatives for understanding that the bulk REO sales program would negatively impact the housing market in California and potentially further delay a housing recovery,"" said C.A.R. President LeFrancis Arnold.

C.A.R. stated it believes bulk REO sales are not needed in the state because housing inventory is ""extremely low and demand is high."" According to C.A.R. data, sales of bank-owned homes are closing less than 60 days on average and often sell for above the list price.

The co-sponsors for the bill include Ken Calvert (R-Riverside), Judy Chu (D-El Monte), Brad Sherman (D-Sherman Oaks), Dana Rohrabacher (R-Huntington Beach), Elton Gallegly (R-Simi Valley), Susan Davis (D-San Diego), and Joe Baca (D-Rialto).

In April, Miller and 18 other California congressmen sent a letter to the FHFA petitioning the agency to exclude the state from the program.

The REO initiative is still in pilot stages, and according to C.A.R., it will include about 600 Fannie Mae-owned foreclosures in Los Angeles and Riverside counties.

In addition to California, the program will include various communities in Florida, Las Vegas, Phoenix, Chicago, and Atlanta. Close to 2,500 are to be sold nationwide. FHFA announced in early May that the first pilot will be completed in the next few months.

About Author: Esther Cho

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