Reports that banks are continuing to have a growing inventory of closed homes and that many of them are selling these homes at steep discounts are very disturbing.
It was our impression that the banks in question had in many cases begun to negotiate new mortgages at lower interest rates with many homeowners facing foreclosure, but is becoming increasingly obvious they are failing to do so, despite prodding from Congress and other elected officials.
And while foreclosed on homeowners are under great pressure, they are not the only ones impacted by the foreclosures. Many communities are being thrown into serious distress by the growing number of abandoned homes in their neighborhoods. In many cases, these homes were vandalized by the frustrated former owners and others taking advantage of the situation, which further deteriorates real estate values.
Empty houses attract crime.
We fail to understand why the banks are adding to the deterioration of the value of their holdings. Instead of selling homes at deep discounts, why don’t they negotiate with the present property owners and thus stabilize communities, property tax rolls and their own losses?
It seems to us that the banks should look for ways to stop the bleeding and create more confidence in their ability to survive and gain a lot of goodwill from the public, and their customers.Posted - Copyright © 2022 Eastern Group Publications, Inc.