It was only a matter of time before banks realized a better way to deal with the housing situation. Too bad it is to the general publics' detriment.
The Chicago Tribune has posted an article stating that banks in certain areas are foreclosing on the properties but then not taking possession of them. The areas may have low property values or home values are not expected to rise. So instead of paying property taxes and maintaining the home in hopes of a sale that they see never coming, they are just abandoning the house.
In my opinion, a lot of the blame for the current crisis is to be placed on banks and a lack of their own personal responsibility. Now they are hurting home owners by allowing these foreclosed homes to deteriorate in the suburbs, neighborhoods and cities.
A house is very much like a living thing. It needs to be taken care of and people living in it for it to survive. If you take that away, it will quickly fall into disrepair and become a weight around the value of the surrounding properties.
Meanwhile, banks get a total write off of the loan while boarded up homes and neighborhoods grow and local tax revenue declines. Meanwhile, there are long delays before the government entities can take possession due to back taxes.
Put the houses on the market and allow investors to buy the properties. There are plenty of people out there willing to invest in them at the right price.
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