It really shocks me. The Main Street Media (MSM) like the Chronicle published yet another bubble head doomsday article. But they made a critical mistake:
Investors own about one-fifth of Bay Area homes in foreclosure
Israel Medina admits he got too gung ho about the idea of getting rich by flipping Bay Area real estate.
Medina, a Concord resident who ran a limousine company before wading neck-deep into the housing market, has seen not one, but 11, of his Northern California properties move into foreclosure in the past year, he said.
“I was a real estate tycoon; I had everything,” said Medina. “Now I have nothing.”
A Chronicle analysis of public records shows that speculators like Medina played a significant role in the region’s subprime loan meltdown.
These real estate gamblers are hardly the struggling home buyers often portrayed as victims of the Bay Area’s and nation’s foreclosure crisis. Some bought houses as often as other people buy shoes, rarely putting down any money. The speculators were betting that home prices would continue to shoot up. Instead, when the market started softening and prices sagged, many of their properties ended up as foreclosures.
More than one-fifth of 6,557 Bay Area properties that fell into foreclosure from January through September this year were owned by investors, according to a Chronicle analysis of public records compiled by DataQuick Information Systems. Of properties repossessed by lenders, 1 in 6 had been owned by people who had two or more foreclosures in their names. Eighteen Bay Area investors had five or more foreclosures.
You see, the problem is that they don’t really know where The Real Bay Area is. They published a graphic that goes with this article, and I’ve taken the liberty of fixing it for them:
Chronicle guys – you owe me for this one. Read up – learn where the Real Bay Area is. Stop talking about all those fake Bay Area places where property prices don’t always rise.