Foreclosures & Rentals -
The current foreclosure market is creating lots of different spins on the 
market. For the seller, it's obviously a huge loss and possibly from the loss of a job, divorce, medical catastrophe and the list goes on. And while payments are not being made on the debt, most of these aren't being maintained either.
For the buyers, there are low prices and fix up properties being sold in as is condition. But also, this new wave of foreclosures is creating lots of rental homes and investment properties. It's evident from the vacant homes currently listed for rent.
My relocation business has turned into a rental relocation business as more and more individuals are being relocated and renting out their existing homes as their isn't any equity left for them and they'll have to bring cash to the table to close. When I'm out showing these relocation clients homes, I'm willing to bet that at least 30% of these vacant, spruced up homes were just purchased as a foreclosure. These foreclosed homes are repainted, cleaned and listed as rental properties.
Statistics show that homes newer than 2000 are more likely to be foreclosures that were purchased during the height of the market. If a homebuyer bought a new home, that home typically didn't include backyard landscaping or an irrigation system. So another tell-tale sign is that a rental home has zero landscaping in the backyard. A typical foreclosure rental may not have a refrigerator, washer or dryer or much landscaping. I don't even have to check the tax records as I've been right 90% of the time.
Interesting phenomenon. Are you seeing this in your area?
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