The Role of Investors in the One-to-Three-Family REO Market: The Case of Cleveland

Brief

The Role of Investors in the One-to-Three-Family REO Market: The Case of Cleveland

Abstract

This paper examines the practices of investors who purchased 1-3 family residential real estate in Cuyahoga County, Ohio from financial institutions that acquired property following mortgage foreclosure. Policy and program recommendations to discourage illegal and irresponsible behavior, encourage beneficial behavior, and provide a cost-effective alternative to demolition of abandoned property are explored. The analysis utilized a number of research tools, including: post-foreclosure transaction data; identifying business connections between investors; interviews with investors, realtors, community development practitioners and financial institutions; and an assessment of vacant homes in 6 neighborhoods used to develop a template for determining the feasibility of housing renovation in different markets.

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