I was reading in this article (posted by huckleberry) that at the peak of the recent bubble, 40% of homes bought were investment homes. That’s point 1.
Point 2 is, since many people (with no money) were using 0-down to buy multiple properties, this caused an artificial demand which in turn helped home prices to go up.
Point 3 is I haven’t heard of any bailouts which help owners keep investment homes. I’ll bet a lot of them have to be let go. Foreclosed.
I think owners may try to jack up the rent in hopes of breaking even with their mortgage payments, then slowly ratchet down the prices until they finally can’t cash flow and must walk.
Question 1: Has anyone heard of any type of bailout or loan re-modification to prevent foreclosures on an investment (rental) property?
Question 2: Does anyone know any solid numbers on how many investment (rental) properties are out there, and how many of those are in distress?
