Contrary to some reports, the vast majority of foreclosures are not the result of reckless speculators
who “made bad bets” on investment properties. Our findings suggest that, while investment
properties completed the foreclosure process at a much higher rate than primary residences (8.5% vs.
5.3%), 82% of completed foreclosed 2005-2008 loans were on owner-occupied properties (see Table
B).23 Applying this proportion to all loan cohorts, we estimate that 2 million of the 2.5 million
completed foreclosures have been on owner-occupied properties.