Quote:
Originally Posted by Saul Good
I was reading yet another article today about how abandoned, foreclosed houses are creating a burden on municipalities. These houses fall into disrepair, and they attract crime. I was trying to think of a solution, and the first thing to come to mind was this:
Could we force the banks to sell the houses within a certain amount of time (one year or so, maybe) following the foreclosure? If they fail to do so, the local government is allowed to auction off the property, collect a fee, and give the rest to the banks.
This would generate revenue for the municipality, clean up the neighborhoods a bit, and help ease the housing glut (albeit by dropping home prices way down).
The banks would take a hit, but I'm not worried about banks that created a lot of this mess in the first place.
Thoughts?
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I would love to buy a couple properties for $0.04 on the dollar and start my career as a slum lord.
How does forced sale of homes at rock bottom prices ease the housing glut?