Investor properties are fairly rare in agency and most jumbo pools but are seen frequently in alt-A and sometimes in subprime deals. Alt-A deals in particular can have as much as 50% investor properties, but the average is around 20%. The occupancy variable is primarily a credit issue. Because owners of investment properties are not constrained by the same behavioral and social factors that discourage homeowner defaults and bankruptcies, default rates end up being higher on investor properties. Additionally, since investor properties typically are rental units, loss severities can be higher than on owner-occupied dwellings.

Was this article helpful?

0 0
Win The Foreclosure Battle

Win The Foreclosure Battle

Get All The Support And Guidance You Need To Be A Success At Beating Foreclosure. This Book Is One Of The Most Valuable Resources In The World When It Comes To Successful Strategies To Save Your Home and Finances.

Get My Free Ebook

Post a comment