The sight of excavators tearing down vacant buildings has become common in this foreclosure-ravaged city, where the housing crisis hit early and hard. But the story behind the recent wave of demolitions is novel — and cities around the country are taking notice.
A handful of the nation’s largest banks have begun giving away scores of properties that are abandoned or otherwise at risk of languishing indefinitely and further dragging down already depressed neighborhoods.
NOTE: This is MY perspective. Banks didn't pay for the foreclosed homes, they were bought with our Bail out money at 80% discounts. Now what to do with the properties? The 11 million foreclosed properties are not for sale in any large numbers to private individuals, nor are they boarded up. If they sit empty they will bring down the entire prices of all other homes. If a person can buy a decent formerly $200k home for $25K, or the same as a car, that would hurt the banks. They want YOU to spend 30 years paying off 3 x the amount of a mortgage including interest.
The only way that can happen, is to swing prices back up, the only way to do that is to create scarcity in houses, the only way to do that is tear down a good number of the 11 million foreclosed houses. Thus they have manipulated the supply and demand and ensured that they will always have mortgage customers. And there are 10 million more houses upside down and ready to be foreclosed on.
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