"The nation’s biggest banks and mortgage lenders have steadily amassed real estate empires, acquiring a glut of foreclosed homes that threatens to deepen the housing slump and create a further drag on the economic recovery.
All told, they own more than 872,000 homes as a result of the groundswell in foreclosures, almost twice as many as when the financial crisis began in 2007, according to RealtyTrac, a real estate data provider. In addition, they are in the process of foreclosing on an additional one million homes and are poised to take possession of several million more in the years ahead.
More than anything, this leads to price declines in the overall housing market. Banks and mortgage lenders don’t really know how to sell homes, and more than that they choose not to keep homes maintained. There isn’t much in this piece, but these bank-owned homes rapidly fall into disrepair, with not just overgrown weeds outside, but stripped wiring and appliances inside. Part of the complaint from the City Attorney of Los Angeles against Deutsche Bank concerns the bank not keeping up homes they foreclosed. That creates tremendous downward pressure on housing prices"...............LINK
No comments:
Post a Comment