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Such is the cost of selling the idea that everyone should speculate on housing because "prices will always go up". When the bubble pops everyone but the intitial speculators gets burned. We should have allowed these mortgage theives to fail five years ago and had the local governments take and resell the houses.
A few months ago I read that they were doing this in Detroit. Since so many people have moved away, the city decided that it would be better to tear down many of the uninhabited houses and turn the areas into parks.
For years I have joked about the annual halloween fires in Detroit causing $20million dollars of..........improvements.
This year will be no different as the arson fest kicks off. Nothing like torching a property you are behind on during the time of year where there are so many fires started that there is reasonable doubt that it could have been someone else and not arson for profit.
Arson at other times of the year would be much easier to prosecute.
Such is the cost of selling the idea that everyone should speculate on housing because "prices will always go up". When the bubble pops everyone but the intitial speculators gets burned. We should have allowed these mortgage theives to fail five years ago and had the local governments take and resell the houses.
Yep. How soon people forget that there were actually TV shows for the do-it-yourself home flippers....and I'm not talking about serious rehabbers but rather buy, slap some paint on and resell in 3 months after the price has gone up 10%.
My friend and his family in chicago have money and they were doing this in some of the condo development near millenium park. Buy in early during construction and then re-sell for gain without ever moving in. They are sitting on some upside down units now that they are renting out...they didn't get *super* greedy and just absorbed the "investing hit" instead of walking away like many did.
True but what I was thinking was that at 7500.00 it was an opportunity for someone to come and fix it up at their own expense to make it habitable with a chance to revitalize a neighborhood.
I didn't say my plan was well thought out...it was just a thought. Not all homeless people are bums ~ there are a lot of families that have become homeless because of the economy.
Some people just need a break.
Yeah, nothing like putting a family in a house with code violations.
The fines and eventual lawsuits from doing so would be lovely as would the wonderful publicity of how "evil bank" sells unsafe home with known code violations to an inpoverished family.
Nobody would be forced into the situation but I bet a lot of people would jump at the chance of being able to do so.
The banks wouldn't be responsible if the "new" homeowner would accept responsibility and know ahead of time what they are getting into.
The situation out there isn't getting any better for people.
This is a perfect opportunity for people to get out there and help their fellow man.
Yeah, nothing like putting a family in a house with code violations.
The fines and eventual lawsuits from doing so would be lovely as would the wonderful publicity of how "evil bank" sells unsafe home with known code violations to an inpoverished family.
A friend of mine bought a house last year that had code violations out the ying-yang. It was disclosed at purchase that the house was in "unknown condition". He took a look at it and decided to get it and repair it bit by bit.
Quote:
Originally Posted by Mathguy
Probably because the home is not in saleable condition and has hazards etc.
Some of the people as a parting gift post foreclosure tore out the pipes, electrical wiring and much worse. In other cases the homes were vandalized etc.
I'm pretty sure there's people out there, whom for $7500, could rebuild the place.
Quote:
Originally Posted by Mathguy
Realistically, if the bank could sell the house for $1 instead of paying $7500 one would think they'd be smart enough to do so.
Honestly, what would be your response if you found out your employee was paying 7500 to get rid of company assets they could instead sell for $7500?
Which is why I'm confused as to why they don't just sell the house for ridiculously cheap instead of paying even more money to tear them down.
Quote:
Originally Posted by WestCobb
That would probably drive down the housing market severely and banks would end up losing more money on houses they were trying to sell.
If all these places are being foreclosed on in the first place, then perhaps the housing market needs to be driven down severely.
Quote:
Originally Posted by WalkTheLine
1. Most of these houses have been striped of the copper pipes and wiring.
2. Since the copper pipes have been striped the basement probably got flooded and filled the house with mold.
The first one is true of the true of the house my friend bought last year. He's redone the plumbing top to bottom. In fact, the entire condition of that house, from the leaking roof to the cat-urine-syrup-filled carpets (apparently it becomes a syrup when it sits too long, who knew?) was in disarray. He's spent about 30k or so in repairs - so approximately 95k for a house worth 300k.
As for the second one, I've never had a basement, so I didn't know the effects of removing pipes and flooding.
1. Most of these houses have been striped of the copper pipes and wiring.
2. Since the copper pipes have been striped the basement probably got flooded and filled the house with mold.
3. Taxes, A lot of towns and city's are nuts and still value empty condemned shells at there former values.
4. Liability. If some homeless people or kids break in and get injured the bank could be liable
5. The neighbors don't want to live next to a flop house.
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Banks demolishing Foreclosed homes...
