Foreclosures Drawing Cash as 401K Returns Sag: Mortgages

Foreclosures Drawing Cash as 401K Returns Sag: Mortgages

David and Michelle Haisley from Fort Wayne, Indiana, weren’t happy with the performance of their retirement funds, so they made another investment — a foreclosed home for $27,000.

Haisley, a heating and air-conditioning technician, said he worked on the house before it went into default and decided to make an offer when he saw it listed at about a third the price of surrounding homes. They’ve already found tenants for the house and David said they’ll buy another foreclosure if they can find the right deal.

“It’s an income stream for us, and when it’s time, we’ll sell it and make more money than we could from our 401K,” said Haisley, 49, who rents out the property for $900 a month for an annual return of more than 20 percent, excluding appreciation. “There’s nowhere for prices to go but up, so it seemed like a pretty safe bet.”

As the housing market recovers from the worst bust since the Great Depression, neophyte investors like the Haisleys are following the lead of private-equity firms like Blackstone Group LP, investing in properties they can pick up cheaply, rent and sell when values rise enough. Home prices rose 4.6 percent from a year earlier in August, the biggest gain since the end of the real estate boom in 2006, according to a CoreLogic Inc. index.

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4closureFraud.org

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One Response to “Foreclosures Drawing Cash as 401K Returns Sag: Mortgages”
  1. Go to http://www.cloudedtitles and see if this is such a safe bet.

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