I saw this article today in the San Jose Mercury News indicating that 1/5 of all the Bay Area foreclosures were investor owned. Very interesting. Here is the text of the article:
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SAN FRANCISCO—More than one-fifth of the San Francisco Bay area properties that fell into foreclosure this year belonged to real estate investors instead of overextended homeowners, according to a newspaper report.
The San Francisco Chronicle also reported Sunday that one in six of the properties repossessed through September had been owned by people with two or more foreclosures in their names.
Experts say the region's frenzied real estate market and the availability of subprime loans enticed novice and experienced speculators to snatch up properties with hopes of flipping them into a quick return.
The newspaper's analysis of more than 65-hundred repossessed homes and condominiums found both naive investors and perpetuators of fraud among those facing multiple foreclosures. Nearly 70 percent of the investor-owned housing was purchased without a down payment.
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What does this mean? It indicates that although there are a lot of homeowners who are currently strapped and are having a hard time making mortgage payments, a significant amount of the foreclosures are for over-extended investors.
www.lisacartolano.com
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