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Investors defaulting to make money


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Editor's note: Reposted with permission from Click here to view original post. By ALEX ULAM For most homeowners, foreclosure is like a fatal illness that starts with losing control of their finances and ends with a sickening feeling when the bank finally seizes the property. Post-foreclosure, a homeowner's credit rating gets trashed and he can be in financial purgatory for years, making it nearly impossible to buy or rent property. But while foreclosure typically spells disaster for homeowners, for some New York City investors it may actually be a good business decision. Indeed, foreclosure doesn't have to be a money-losing proposition, especially for the small-time investor who borrowed money to buy townhouses or condominiums, according to Augustine Diji, a Manhattan-based lawyer who helps investors drag out the foreclosure process for as long as possible. A depreciating real estate market and adjustable-rate mortgage resets have changed the equation for m...