208,078 New Listings - November 2009 - Last update November 20, 2009 12:30 PM EST 
Investors top the list of foreclosure in Bay Area
Real estate investor in Bay area, Israel Medina is starring at foreclosure notices he found, not only one but 11 of his Northern California properties are in the list, for the year. The year ahead has been a hard hitting for him when his limousine company gambled too big to buy 11 properties in early 2006, virtually at the same time.
“Before blooming housing market”, Medina says, “I made some money through wise investment, and I had everything. I was a real estate magnet. I lost my all my money and good credit. Today, I have nothing.”
As per the public records analysis of the Chronicle, housing market gamblers like Medina are in the game and their role is a significant factor to liquidify the subprime loan in the Bay area.
These real estate investors are apart from the general public who suffer a lifelong struggle to buy one house. On the other hand those who are in the business bought properties like hot cakes, and that too without giving any money. Such investors are presented as victims of the foreclosure crisis of the nation and Bay area. The speculators were forecasting price hike up will continue to skyrocket. Instead market fall down and prices started decreasing, taking their properties into foreclosure procedures.
As per the public record analysis of DataQuick Information Systems, foreclosure file list for this year, in the span of January through September includes properties owned by investors. These Bay area properties in foreclosure share one-fifth of 6,557 estates. 1 in 6 repossessed properties are owned by persons who had filed two or more foreclosures in their names. Leading the region in filing are investors with five or more filings for eighteen Bay area investors.
Andrew LePage from La Jolla, San Diego, who is an analyst with DataQuick said, “when market was blooming, people heated the housing market by buying as many houses as they could.”
In hysterical period and hyperactive market banks and other landing institutions offered easy loans and no-credit-check subprime mortgages, leading almost anyone to buy properties as if a real estate investor. Overflow of first-time house buyers and investors flooded the market to hit the recent price appreciation up to double digit in the Bay Area.
As such investments are proven bad, lenders repossess properties, leaving regions’ public and homeowners in the pain.
Hans Johnson, housing issues expert and associate director of the Public Policy Institute of California, said, “every one of us would have to pay in one or the other way for the losses of lenders. And anyone in the foreclosure area would definitely say it upsets them.”
A report from the Chronicle’s investigation said that there is a wide range of defaulters – varying from new investors to persons who may have been trapped in a scam to people who have been committed fraud. They carried on with a common hope of a payday.
Looking to the scenario, some blame for the subprime mortgage crisis should go to the investors and some to the lenders.
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This is hitting Detroit and Atlanta the same way; bad. Atlanta implemented laws to make such lending practices criminal and this should be done federally.