Home Flippers are getting burned

Home Flippers who bought multiple properties during the housing boom seeking to flip these properties are currently getting burned.Many of these speculators are sitting on properties they bought towards the end of the boom and are now unable to sell them.  Most of these investors took advantage of leveraging and bought these properties with little to no money down.  Some investors are even carrying mortgages that they owe more than then the home is worth!  (This is known as being upside down)

President Bush has announced plans to help subprime borrowers that are in mortgage default due to adjustable rate mortgags and other mortgages that were unsuitable for them.  However, Bush made it a point to say he would not help out investors, that many believe caused the housing market problems.

Now many investors will find it better just to walk away from these properties and face foreclosure.  According to the Mortgage Bankers Association, 25 percent of Florida foreclosures were non-owner occupied (investment) properties.

You can head on over to CNBC to read more about how flippers are getting burned.