Fannie Mae will put up nearly 2,500 distressed properties in eight locations around the US to investors who are willing to buy them in bulk and rent them out for a set number of years. The cities where they will be are obviously the ones hardest hit by foreclosure...Florida, Vegas, Phoenix, Atlanta etc...and range from single family to apartment buildings.

This sale represnts only a small portion of total government owned REO properties but this is a positive step towards improving these blighted areas and increasing severely depressed values in them. Not all of the specifics are out yet but they have said that investors must post security deposits in order to bid and also must prove that they are financially stable, have property management experience and have strong ties to the local community, such as a history of working with local development organizations. Investors will also be required to rent the properties out for a specified number of years, the exact number of years has yet to be disclosed however.

The date that these sales will begin has not yet been announced either but it should be within the next few months. There will be no shortage of willing investors I'm sure and in the end this will work to solve many of the difficult issues these areas are facing. Certainly a step in the right direction.

This info was taken in part from an article on CNNmoney by Les Christie