White House wants to make foreclosures available for rentals

(WXYZ) - The White House is suggesting a new program to turn government-owned foreclosures into rentals. The hope is that keeping people in homes would stop them from becoming blighted and driving down local property values.

Amanda O'Dell loves living in Royal Oak, but she is concerned about the foreclosures in her area.

A beautiful foreclosed home is right next door. She tells Action News that she would much rather have someone living next door. "It is good to have families in the neighborhood, to keep the neighborhood going."

The Treasury Department is seeking management companies to oversee some of the foreclosed homes that are controlled by Fannie Mae and Freddie Mac.

The mayor of Royal Oak is reluctant to endorse the plan until more details are released, saying they don't need more bureaucracy. However, Mayor Jim Ellison tells Action News that anything that keeps neighborhoods from being blighted is positive.