This is really sad, and it makes me really mad. Not at the banks. They're only doing what needs to be done in order to try to place a floor under this market glutted with foreclosures. An asset is not an asset if you can never sell it. An investment is not an investment if you can never sell it for a profit. As long as the market remains glutted with foreclosures, existing home sales and new construction will never recover.
Watch for the Obama regime to get wind of this, and step in, demanding that homes set for demolition be "given" to the poor.
Banks turn to demolition of foreclosed properties to ease housing-market pressuresCleveland — 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.
The banks have even been footing the bill for the demolitions — as much as $7,500 a pop. Four years into the housing crisis, the ongoing expense of upkeep and taxes, along with costly code violations and the price of marketing the properties, has saddled banks with a heavy burden. It often has become cheaper to knock down decaying homes no one wants.
The demolitions in some cases have paved the way for community gardens, church additions and parking lots. Even when the result is an empty lot, it can be one less pockmark. While some widespread demolitions could risk hollowing out the urban core of struggling cities such as Cleveland, advocates say that the homes being targeted are already unsalvageable and that the bulldozers are merely “burying the dead.”
More @ WaPo...
