More than 30 percent of Florida homebuyers during the boom year of 2007 had two or more mortgages, evidence of rampant investment that is partly blamed for real estate’s ruination, a recent federal report says.
A Federal Reserve Bank of New York study released this fall uses previously undisclosed credit and loan information to show that home flippers played a bigger role than previously thought in bringing down the market.
In 1999, just 16 percent of Florida homebuyers had two or more loans.
Chronicled on the Fed’s blog this month, the report singles out the hard-hit states of Florida, California, Arizona and Nevada to compare real estate purchases between 2000 and 2010 with the rest of the nation.
In 2006 in these so-called “sand states,” the report reveals, 10 percent of home purchases were made by people with four or more mortgages on their credit reports. That’s an increase from about 3 percent in 2000.
Read : “ Flippers’ role in housing flop larger than thought ” an article by Palm Beach Post