No, no, no! Are you kidding me?
Taxpayers in cities across the country are paying billions of dollars dealing with the leftovers of the big banks’ recent foreclosure feeding frenzy.
According to a recent NPR story, it costs about $10,000 each to raze these houses that were taken away from families by banks and then left unoccupied and untended. And, in most cases, the banks are not paying, either to keep up and sell or rent the homes or to have them demolished.
Why should cities and counties be paying to deal with this problem? If the banks wanted to own these homes so badly that they foreclosed instead of working with people to restructure loans, then those banks should step up and take care of them. Duh!
“There is certainly a major philosophical and functional disconnect when a bank has refused to do a loan modification. And then, the house becomes vacant and is torn down.”
Banks demolish foreclosed homes, raise eyebrows
If I, as a private citizen, owned a house that had been vandalized, that was dangerous to health and safety, that was a haven for crime and negatively impacted my neighbors, I would be required to either demolish it or fix it. Period. Nobody would step in and deal with the problem for me.
The banks made billions off shady mortgages bundled and sold as securities to unsuspecting investors. Then they made more billions “servicing” the loans they sold, including engineering protracted foreclosure proceedings. They cheated local governments out of fees by creating MERS, an electronic mortgage recording service. And now they’re asking those local and state governments — using our tax money — to pay to deal with the fallout by paying to demolish or repair millions of abandoned houses.
How much better would it have been for the local, state and national economy, for the neighborhoods and, in the long run, for the banks to have found ways to help people stay in and care for their homes? That seems like a complete no-brainer to me.
I don’t blame homeowners in these bank-blighted areas from supporting anyone who will come in and start the process of removing ugly and dangerous structures and rebuilding their property values. But I wonder how many have stopped to think that they are footing part of the bill.
It’s just another bail-out for the banks. They made the money originating, securitizing and servicing the mortgages and now they’re leaving the taxpayers to deal with the fallout. That’s just so wrong. We’d all be better off if someone would take a bulldozer to these too-big-to-exist corporations.