Now that so many people have lost their homes

April 22, 2013 | By | 2 Replies More

Now that so many people have lost their homes to foreclosure, the banks are swooping in the buy them up as investments. This is raising the cost of owning housing, making it difficult for many people to buy their own home. This article suggests that this is the beginning of yet another housing bubble. Furthermore, it has the perverse effect of steering former homeowners into the arms of banks, who will now be happy to serve as landlords.

The ability of investors to make cash deals is helping them buy a large portion of the distressed homes that continue to flood the market. Property brokers and others in Florida say traditional buyers — even those able to qualify for financing in a still-tight mortgage market — are finding it difficult to compete with the cash and market savvy of large investors.

“The investors are making it hard for a regular homeowner to buy a property,” said Robert Russotto, a broker with Better Homes and Gardens Real Estate in Fort Lauderdale. “They are getting outbid by people with cash.” Russotto noted that out of the 20 home sale contracts he is the process of completing, 17 of the buyers are major investors.

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Category: Economy

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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  1. Tim Hogan says:

    The next thing the banksters will do is securitize the leases and sell them with a AAA rating from Moody’s.

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