Banks bulldoze foreclosed homes

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UPDATED (5:29 PM)

Banks have a new remedy for America's ailing housing market: bulldozers.

There are nearly 1.7 million homes in the U.S. in some state of foreclosure. Banks already own some of these homes and will soon repossess many more. Many housing economists worry that a near constant stream of home sales by banks could keep housing prices down for years to come. But what if some of those homes never hit the market?

Increasingly, it appears that banks are turning to demolition teams instead of realtors to rid themselves of their least-valuable repossessed homes. Last month, Bank of America announced plans to demolish 100 foreclosed homes in the Cleveland area. The land will then be donated to local government authorities. BofA says the donations in Cleveland are part of a larger plan to rid itself of its least-salable properties, many of which, according to a company spokesperson, are worth less than $10,000. BofA has already donated 100 homes in Detroit and 150 in Chicago, and may add as many as nine more cities by the end of the year.

Read more: http://curiouscapitalist.blogs.time.com/2011/08/01/bulldoze-the-new-way-to-foreclose/#ixzz1TskFSbdZ

And Hillbuzz mentions that black neighborhoods in Dayton, Ohio are devastated. There are so many vacant lots the city is begging the neighbors who remain to mow the grass on the lots.

As they say on Hillbuzz:

Hope!

Change!

Vacant Lots!
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