US government converts 1st foreclosure to rental WASHINGTON (AP) - The U.S. government has started selling off its stock of homes in foreclosure. The Federal Housing Finance Agency said Monday that a group of investors purchased the first of 2,500 homes being sold as part of a foreclosure-to-rental program. The government has control over roughly 250,000 foreclosed homes owned by Fannie Mae, 1 percent of which will be sold and converted into rentals through the pilot program. Officials say converting the homes into rentals can reduce credit losses and stabilize home values.