A group of 34 senators wrote to key members of the Obama Administration asking that it decide — quickly, please — what it’s going to do with all the foreclosed properties now owned by Fannie, Freddie, and the FHA.

One plan that has been gaining momentum would sell those properties in bulk and at a discount to investors. They would then fix ‘em up and rent them at reasonable prices.

That would get the properties off the government’s books and (in theory) put the homes in good hands — thus improving property values in those neighborhoods.

Here’s a snippet:

REO represents a significant financial risk to the [Fannie and Freddie] since they incur taxes and fees on the properties in their inventories, these costs increase the longer it takes to resell the REO, and all the while the value of the properties may be declining.

Click here to read the whole letter. (Not really that exciting, but certainly detailed.)