Posted in: Business

U.S. Banks Go On Bulldozer Frenzy, Destroy Thousands Of Foreclosed Homes

Bulldoze Home

With thousands of homes going into foreclosure some US banks have come up with a unique way to keep costs down, they have been bulldozing homes rather than paying for their upkeep. Encouraged by government officials large banks have been paying upwards of $7,500 to level homes.

According to the Washington Post bank executives have begun to realize that destroying a home is cheaper in many cases than paying upkeep costs and property taxes.

In Cleveland, New York, Philadelphia and Georgia “land bank” systems have been setup that encourages the demolition of homes which are then turned into anything from parking lots to community gardens that better the area after a home has become run down or impossible to sell.

Two of the biggest “land bank” donations have come from Bank of America and Wells Fargo where hundreds of foreclosed properties were donated in Ohio. The nations largest mortgage provider Fannie Mae has also been turning over as many as 30 properties per month to local “land bank” systems.

In a grime comparison of how bad some areas had become some observers have said of demolitioning entire communities, “at least it’s burying the dead.”

At a time when many American’s can’t afford their mortgage or live off saving accounts as they search for employment it seems a little silly that banks are destroying homes that could have been sold at deep discounts.

What do you think about “land bank” systems and the demolition of perfectly good homes?

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Comments

13 Responses to “U.S. Banks Go On Bulldozer Frenzy, Destroy Thousands Of Foreclosed Homes”

  1. Mary Snyder

    Why demolish homes when so many people are "homeless" today! Sell the homes for $7,500.00 and I bet you would have a lot of buyers!

  2. Denyce Joseph

    Entire neighborhoods will be cleared. That's pretty sad. Drive up Highway 5 in the central valley of California and you will see where all the foreclosure people live now. In tents.

  3. Debra Sends Love

    what a shame..this is just another step of GREED..a show of power..a demonstration that the people in power need to be removed..lets give the banks and the politicians min wage..see how they can make out..THE EYES OF FUTURE IS PRAYING FOR US TO SEE BEYOND OUR OWN TIME…

  4. Adria Stembridge

    This is a travesty. With so many jobless, homeless and without any hope of a future it should be crime that banks let houses decay then tear them down to avoid paying taxes. I don't know what the solution is but acts like this will be the undoing of civil society.

  5. Linda Wood

    Absolutely ridiculous………. I have two on my road and no one even knows how to get hold of a bank let alone it being shown. We have been taking care of the one behind us as far as mowing lawns and checking it. We were just flooded in August and I know people looking for places to live and instead they go homeless after being devastated while idiots demolish homes………….. Any more bright ideas US government and Banking?

  6. Winston Buie

    ever see william shatner in those cheap motel commercials…the underlying principle is its better to rent the room at a discount than to not rent the room at all…that way at least you have some money coming in…the same principal apply's here….payin for upkeep, deduct that price from the sale price of the home and see how many buyers are lining up and knocking down your door.

  7. Adria Stembridge

    Investors would buy the houses, demolish them, and sit on the property. Or if they are fixable, they would fix and rent. You have to make a way for people of need to get matched up with deals like that, and specifically exclude investors. That might be done by requiring that the buyers are single-home owners only. Own two homes, and you are not eligible.

  8. John Hess

    Sadly the majority of homeless would not be able to keep up with the obligations of owning a home, regardless of whether it was given to them or not.

  9. William E Packer

    George Carlin wanted to turn all those big green golf courses into new housing for the homeless! We should see to it just for George. Might even get a wrinkle in some old corporate pampas ass for taking away his or her sport!