A recent article by Matthew Goldstein in the New York Times tells the story of how private equity and hedge fund firms have been purchasing troubled mortgages that remain on the books, largely as a result of the recession. While federal regulators predicted that these parties would provide greater protection for the homeowners, this has not come to pass in a number of cases. Some of these firms have moved aggressively to sell the homes and then put them on the market for a quick turnaround through Zillow and sites, while others have converted them to lucrative rental properties.
Private equity firms; hedge fund managers. Sound familiar? Is it possible that those who were bailed out during 2008 are now taking advantage of the homeowners who counted on the system for fairness, but instead were encouraged to take out unsustainable loans? It’s a tough world out there. Piedmont Housing can help you understand what is an acceptable level of risk in your home purchase.