Tuesday, August 16, 2011

Morgan Stanley pushes for deed-for-lease bulk sales

One potential solution for helping to alleviate the ailing housing markets in the nation, is to allow investors to acquire distressed properties in bulk so they can rehabilitate the houses and turn them into rentals, according to investment bank Morgan Stanley (MS: 17.88 +5.86%).

Furthermore, leases on these properties should be set-up for the current, ailing borrower. This way the homeowner gets to stay in their property, and will trade off lower monthly living expenses with the loss of collateral investment.

The investment bank released a study called "REBUILD – What to do about U.S. Housing," in which analysts advocate for housing agencies, as well as banks and trusts, to voluntarily set up bulk sales programs for vacant properties in distress.

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