Posted by: Prashant Gopal on January 18

Foreclosures are primarily hurting families who are losing homes they bought to live in during the boom. But plenty of investors, including subprime borrowers, are getting burned, according to the Mortgage Bankers Association’s Jan. 17 report, which examines mortgage foreclosures, modifications and repayment plans in the third quarter of 2007.

About 18% of foreclosure actions started in the 3rd quarter of last year involved properties owned by investors (These are non-owner occupied homes). What also emerged from the data is that many subprime borrowers were taking out mortgages to buy investment properties, especially in markets now getting hit hard by foreclosures.

In Ohio, which has one of the worst foreclosure rates in the nation, 34% of subprime fixed-rate foreclosures involved investor-owned properties and 21% of subprime adjustable rate mortgage (ARM) foreclosures involved non-owner occupied houses. In Nevada, the worst state in the country for foreclosures, investor-owned properties accounted for 36% of subprime fixed-rate foreclosures and 18% of subprime ARM foreclosures.

Table 6 (on page 19) of the report details the share of investment properties in foreclosure by state for prime and subprime loans.

Ocean View

 

This home proves that there are still great deals out there to be made! Here is a beautiful 5 BD/3.5 BA home on Pensacola Beach and it is offered at a steal of $390,000. Even though this property is contingent, there are more just like this. With prices this low, where else can you find such a solid long term investment? See Chrismas Does Come Twice a Year!