Waypoint Real Estate Group, an investment firm focused on foreclosed homes in the U.S., has secured a $65 million loan from Citigroup (NYSE:C) to buy additional properties to turn into rentals.
Turning foreclosed homes into rental properties has been one suggestion to help stabilize home values in areas hard hit by the foreclosure crisis. The Federal Housing Finance Agency launched a test program in February aimed at turning foreclosed properties into rentals and said then that planned to sell 2,500 FHA-owned properties in Chicago and other areas. (http://www.americanbanker.com/issues/177_128/fhfa-sees-progress-in-foreclosure-to-rental-program-1050622-1.html) Last week the agency said that it had sold 699 Fannie Mae properties in Florida to a real estate investment firm as part of the program and planned to announce additional sales in coming weeks.
Waypoint, based in Oakland, Calif., is working on a larger financing deal with Citigroup,
