by Douglas French, Laissez Faire Books:
Walking away is not just for homeowners anymore. Now banks have joined in and are walking away, leaving thousands of homes vacant because they don’t want to be responsible for maintaining them.
While housing bulls urge investors to buy up houses, banks that could control property ownership merely by foreclosing and paying the back taxes, homeowner’s dues, and other expenses are saying no thanks. The math just doesn’t work.
The bulls may want to rethink their strategy. “Bank ‘walkaways’ used to be extremely rare, but they have ballooned in the past year or so, resulting in a large number of homes stuck in foreclosure, sometimes for years,” reports Kate Berry for American Banker.
Please follow SGT Report on Twitter & help share the message.