But the bursting bubble has not brought relief to suffering neighborhoods. On the contrary, communities already hard-hit by mortgage fraud and subprime foreclosures are now enduring the next wave of profiteering: the selling of vacant and foreclosed real estate to speculators.
A few of the purchasers are doing a service by fixing foreclosures up and renting them out. But far too often the foreclosed homes stay vacant and derelict as they’re flipped from one buyer to another.
In areas with bottomed-out real estate markets, prospectors see an opportunity to profit from devastation. Houses are being resold at tremendous mark-ups – sometimes upward of 1,000 percent – under “rent-to-own” contracts, whose holders bear the responsibilities of homeownership but few of the rights. These foreclosed houses are purchased in bulk, sight unseen, by investment companies far away from the community.
These current economic times are terrible for most people, but are great for the few that have the extra cash to invest in out terrible economy. It seems that many investors are purchasing large amounts of properties for more than 50% less than they were worth just a few years ago. As much as you may want to hate these people, you have to admit its a great idea. Eventually these property’s value will increase and when they do that person is getting a nice payday