Fannie Mae Study Yields Clues to Odds of South Bay Foreclosure
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
South Bay Foreclosure
South Bay investors have dozens of possibilities vying for their business at all times. South Bay real estate investment opportunities come in a variety of forms: raw land, single-family residences, and multifamily rental housing in many forms, from duplexes to apartment buildings. Investors compare the various offerings according to the likelihood of return on their investment vs. downside risk.
Foreclosure represents the ultimate risk — so no matter how unlikely it might be, canny investors study the histories of real estate investments that have stumbled. Whether South Bay foreclosure statistics or national trends provide the data, projecting the likelihood of such ‘Close Encounters of the Foreclosure Kind’ is part of an investor’s due diligence.
Fannie Mae and South Bay Foreclosure
That’s why my eye was drawn to several published reports about Fannie Mae’s recent nationwide study. It drew an interesting connection between an investment properties’ relative location and the rate of potential default (foreclosure).
National data is weighted toward big city populations, yet I think it’s a relevant approach to weighing the likelihood of a South Bay foreclosure. Location is a given, and here, it’s relative location that’s important:
- Locating close to workplaces matters. Each additional minute of commute time raises the risk of default by 3.7%. Put another way, each additional five minutes of commute time makes the likelihood of foreclosure 18% greater!
- Public transportation is significant. If 30% or more of a neighborhood’s residents commute by rail, the risk of a local default is reduced by a full 58.4%.
- Mixed-use areas are a positive. When there are 16 or more retail establishments nearby, the risk of default is reduced by more than a third.
- (This is one we could have guessed) — affordability is key. If a multifamily building fits Fannie Mae’s definition of ‘affordable housing,’ foreclosure risk is reduced by 61.9%.
- Parks matter. If the property is located within one mile of protected green space, the risk of foreclosure is reduced by 32.5%.
Prudential and South Bay Foreclosure
Naturally, avoiding any possible future “South Bay foreclosure” is Job One for all my real estate investor clients. For up-to-the-moment information on the state of today’s market, join them: contact me anytime!
Charles Fitzgerald Butler is a Real Estate Professional in Carson, Ca, specializing in First Time Home Buyer Programs, Distressed Sales, REO Residential and Commercial properties. Charles helps homeowners develop a second income stream so they can save their homes from foreclosure. Prudential California Realty – Greater South Bay, South Bay Real Estate, and South bay Realtors.
Charles Fitzgerald Butler can be reached at 310-684-2505 or www.CFButler.com. Prudential California Realty – The Mulhearn Group is an independently owned and operated broker member of BRER Affiliates Inc. Prudential, the Prudential logo and the Rock symbol are registered service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. Used under license with no other affiliation with Prudential. Equal Housing Opportunity.
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