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?
