Rotting empty houses, insanity or scam?

[Lynn Harrison]

I don't post much any more. My fiance passed away 3 years ago and I lost a lot of my money as we were not married. Now I'm just looking for one fixer house to live in rather than an investment. 

What I am seeing lately looks insane. I'm seeing empty houses that are not being rented or sold or repaired in California. I've found them by driving back streets, noting addresses and then checking some of the history. They have been empty for years or they have been recently bought but not renovated and sitting empty. Not all are bank owned- some are private parties.  I only look deeper into properties I could afford which is a small percentage.

I understand some large companies are putting derivatives from rent on these properties into the stock market and that pension plans buy heavily into them. I'm starting to suspect there is a huge scam going on- that the rents are not accounted for accurately... Not good for the pension plans or the economy. Anyone else wondering about this too?

The others- the private party ones... is this insanity? Are others running across this? What is the reason for this? Foreign investment? Vacation homes no one can possibly use? I mean, these houses are silently rotting. Meanwhile the prices go up and the homeless population is increasing here. At least they now have places to live...

As someone who enjoys renovating this is killing me.

[Jay Hinrichs]

@Lynn Harrison

 are you talking about Vancouver WA.  

Many reasons properties are vacant

1. title issues... and can't give marketable title.

2. owner just does not want to do anything for sentimental reasons.  ( I have one on my block like that 500k home just sitting) owned by doctor who had a day surgery go bad and patient expired) move away house has been vacant for 3 years now... also has winterized stickers on it so some mortgage action.

3. big bulk buyer got stuck with a few they will eventually get to.

and any other myriad of reasons.