Foreclosures and REO properties are a common concern among community nonprofit organizations, local government agencies, and researchers. Large stocks of REOs may lead to higher vacancy rates, reduced property maintenance and downward pressure on already falling house prices. In response, government agencies at the national, state, and local levels have been quick to adopt neighborhood stabilization policies to reduce the number of REO properties on the market. REO disposition strategies aimed at promoting the acquisition and rehabilitation of REO properties by occupant-owners, particularly new homeowners, are common.
In Massachusetts communities like Chelsea, units in small multifamily properties represent over half of the housing stock. Unfortunately, very little research exists on the issue of tenure change from foreclosures or the role of investors in neighborhood stabilization. This paper introduces several data sources to help those interested in foreclosure patterns determine the tenure of an individual owner and estimate the magnitude of investors’ presence in a community.