Local real estate association complains about federal bulk foreclosure sales

Echoing concerns raised by their counterparts, a local real estate association is objecting to a bulk-sale pilot program enacted by the Federal Housing Finance Administration, according to the Orlando Sentinel. This could have a significant impact on the market for real estate in Orlando.

According to Yahoo Finance, the REO bulk sales pilot initiative calls for the sale of nearly 500 Fannie Mae-owned foreclosed homes. The mortgage association has targeted undisclosed institutional investors as potential bulk buyers.

The local real estate group has sought feedback from its members in order to determine how the sale would impact the local real estate market. Other realtor associations have suggested that bulk-sales programs should be limited to small geographic areas.

According to the news source, 775 real estate-owned or repossessed houses had come under contract in July as part of the program. This was split up by geographic area, with 190 in central and northwest Florida, 418 in southeast Florida and 167 in the southwest part of the state.