Wednesday, December 14, 2011

Flippers Paid a Part in Mortgage Defaults

Just read a report that in the 2004-2006 housing bubble, 20% of the loans were made to investors who were flipping houses, causing the prices to rise extravagantly.  The 4 states most impacted were Arizona, Florida, California and Nevada. 

Then when the prices started falling 30% of the mortgages that went bad, were these investor houses.  They were the first to let the properties go back; after all their homes weren't being impacted, just their investment homes. 

So when my cousin said I said "investor" like a 4 letter word, maybe there was a reason.

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