The investors are more likely than not the Sink hole repair companies. This is how we (Florida) got into this mess to begin with. The investors bought the house for the cost of the land. Say the house was valued at $300K..investors paid no more than $25-30k. the seller walks away with an insurance check for the insurable value of the property lets say $270...investor then pay the seller $30..seller is made whole. The new buyer then makes minimal or cosmetic fixups to the property and sells it under market value for lets say $250K or an immediate gain of more than $200K. Accoding to disclosure laws only the seller only has to make issues with the property known to the first buyer, so the investor has no legal requirement to "disclose " the problem to the 3rd buyer. ITS a mess but this is how we got into the situation we are in today!!
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