Has anyone seen any figures as to what percentage of foreclosed mortgages have been on investment property as compared to the principle residences?
I ask as there was a short article in today's newspaper here, that stated 1 in 29 local homes had foreclosures occur in 2008. At the tail end of the article there was a brief mention that with the upsurge in real estate prices a few years ago, many bought investment properties with an adjustable rate mortgage. Then when the rates adjusted upwards many were faced with not having enough income flow to pay the outflow.
This type of foreclosure doesn't ellicit any sympathy from me. I've never noticed any figures on this. Anyone?
There were a lot of properties in this area that were bought as investment. The people who bought were mostly from California and Florida. Most of these properties are now in foreclosure. They thought they were going to make a killing, but the worm turned. They were responsible for getting the prices way over market here and now they are dropping back to where they should be.
I agree with you M. Don about having no sympathy for them. They were greedy and thought the market was going to keep going up.
My guess would be many in the areas of the highest rise in home prices. Florida, Southern Cal and Nevada. There is a reason that there is a correlation that the highest foreclosure areas in the nation were the ones with the highest rise in prices. Michigan and Ohio foreclosures are probably more from job losses.