Report: Investors buy nearly half of Oakland's foreclosed homes - The Bay Citizen
“We have investors who are eating up our neighborhoods for their profits,” said Desley Brooks, an Oakland city councilwoman.
In an interview, Brooks argued that families that would want to buy
the foreclosed properties with conventional financing are being squeezed
out by investors who can afford to pay cash. Real estate investors are
“taking away the notion of buying into the American Dream,” she said.
In neighborhoods hit hard by the housing crisis, it would be cheaper
for many families to buy a foreclosed home than rent an apartment. The
average price of a house in those neighborhoods is less than $150,000.
Monthly payments on most 30-year mortgages at that price are usually
less than $1,000, while rents on many West Oakland properties approach
and exceed $2,000.
But banks have been reluctant to sell to buyers who purchase with loans, preferring the ease and speed of a cash transaction.
This portends of something that is not good.
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