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When banks want to get rid of houses, they put them up in foreclosure sales. If they're not paying property taxes, then they have essentially given the homes over to the city.

So, what we're talking about here then is banks giving homes over to the city. Unless we're talking about totally worthless homes, any city would be glad to take over a home. Even in distressed areas, you can sell a foreclosed home for $100k.

The reason why banks aren't getting rid of homes in auctions is because they don't want to totally crater the market. A city wouldn't have the same concerns.

by Upstate NY on Thu Jun 18th, 2009 at 05:07:38 PM EST
[ Parent ]
... the reason that there are returns to be had from foreclosure auctions is because of the demand versus the supply. In areas where the demand for used homes has been pushed down into the inelastic range, dumping more homes onto the market will reduce the total revenue extracted from home buyers.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Fri Jun 19th, 2009 at 01:30:51 PM EST
[ Parent ]

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