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Of course. Anyone who bought low and sold high. Just as in a pyramid scheme, those who get in early and get out before the collapse make money.
Also, everyone who was involved in making mortgage loans to unqualified borrowers, who then packaged and sold those loans to investors, made a bundle. That's how the whole thing happened. Huge influx of Chinese money to lend, and the loosening of credit regulations, led to people who had bad credit and no income getting "Liar Loans". Lenders made money in fees and points, made money when they bundled and sold these worthless mortgages. Appraisers made money when they over-appraised the properties. Real estate lawyers made money when they did the closings. Even the idiots who took out huge home equity loans on their inflated home values, spent the money, and then sat in their homes not paying rent or mortgages for years while all the foreclosures wound through the courts, crying that they were going to lose their homes, that they'd already sucked all the equity out of, even THEY made money. Oh, and the criminals who stripped foreclosed properties of their appliances and copper metal pipes, while the banks let the foreclosed properties sit for months or years before finally deciding to put the stripped shells on the market, those criminals, and the scrap yards who so readily bought the stripped out metal, because after all, doesn't everyone come by copper pipes legally? They all made money.
The people who lost? Those who wound up holding the bag with the worthless mortgages. Those who bought at the top of the market and then had to sell for some reason for a much lower price, who didn't want their credit ruined by simply walking away from their mortgage, or who had bought at the top of the market for cash and then had to sell. The communities that were gutted by the stripped, abandoned properties that caused the home values of those who stuck it out to plummet even further. They (meaning us all) were the losers.
there were so many strategic bankruptcies by people who had lots of money too .they just walked away .
there were so many strategic bankruptcies by people who had lots of money too .they just walked away .
That was particularly true in California and Arizona where they didn't have deficiency judgments. In many cases, people cashed-out of their property profitably during the 2004-2007 run-up --- and then walked away from a huge mortgage when the bubble burst in 2008!
Sounds like the answer is "buyers who weren't also sellers." That would include investment buyers and first time buyers. People who were switching homes at that time saw a decline in the price of the one they were selling.
Bought a house that needed work in 2014. Did 95% of work on my own as cheap as possible but used all higher end materials buying only on closeouts and clearance. Sold in 2018 for almost 250k profit. The market went crazy last May. We got 70-80k more than the max I expected to get. Buyers are blinded by the bling.
there were so many strategic bankruptcies by people who had lots of money too .they just walked away .
I know someone who did that but he couldn't buy a house for 10 years and thus missed the market comeback. He was finally able to buy last year and paid a nice premium after throwing away 9 years of rent. I wouldn't say he profited since he also lost his original down payment.
I know someone who did that but he couldn't buy a house for 10 years and thus missed the market comeback. He was finally able to buy last year and paid a nice premium after throwing away 9 years of rent. I wouldn't say he profited since he also lost his original down payment.
if he had the money to buy a house why did he not invest elsewhere and rent ..he actually could have done better renting and investing in the booming equity markets that went up 300- 400% ...
either the story is really not true or this was one dumb guy and it has nothing to do with throwing away the rent .
we rented and made incredible money investing the money not tied up in a house elsewhere
I did indirectly. I had always rented and didn't think I would qualify for a home, but I moved to a more affordable area about 150 miles from where I lived and I got lucky to buy a home right before prices shot up and I found a starter home in decent shape and in three years it has doubled in price.
My profit wasn't monetary as much as being able to afford a home because prices had dropped after the housing crash and being able to get in before prices shot up around here.
I bought 3 houses in Arizona that I have been renting out....they have paid good rental income to me and are now worth at least double what I paid.
We bought in 2006 and sold via short sale in 2009, so we definitely didn't profit during the housing collapse itself (but the people who bought our house did...).
However, we did sort of profit because prices were still lowish in this area when we purchased a much nicer home in a nicer area in 2014. It has gained about $70K in value in the past five years. We aren't planning on selling it anytime soon, but it's good to know that we purchased during a buyers' market, at least.
We bought in FL close to the bottom of the housing crash. At that time appraisers were shaken and afraid of their own shadows, so we got an even better deal with a lower appraisal. We liked the area, visiting our son and family often over the years and would always check the houses for sale, but realized it was too expensive for us at that time.
We saw the prices tanking and decided it was a good time for us to buy. We bought our house and it’s now worth $120k+ more than what we paid. We snowbirded for several years and sold our other house in the North last year when prices were up. The price has dropped since then again. Our timing worked well for both. We aren’t brilliant investors, things just happened at the right time.
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