Suburban Wasteland Bus Tours

by twit

From the Chicago Tribune on March 31, 2008, a look at the creation of suburban wastelands:

Smith said lenders who take full possession of foreclosed assets, with all the attendant costs, probably are betting the housing economy is poised to improve.

“In some cities that have low property values, where there are dense concentrations of foreclosures, you see lenders who file foreclosure proceedings but don’t actually take control of the properties, because the lenders have to maintain them and pay taxes on them,” he said.

“There are areas in some parts of the country where property values are quite low, and there are no large-scale expectations of them going up. They don’t know that they will ever recoup those costs,” and so the lenders never re-take title to the properties, allowing them to become derelict, Smith said.

… Nationally, home foreclosure filings continue to rise at an alarming rate. They jumped 60 percent, and bank seizures more than doubled in February from the same month last year, and there is increasing concern that it’s not just mortgage holders but those tapping home equity lines who are at risk of losing their homes.

Now with bus tours…

From the Associated Press on Mar 26, 2008:

Welcome to the Foreclosure Bus Tour, a six-hour expedition to show Orlando-area homes and educate potential buyers on the vagaries of snatching foreclosures in a state where the housing market has struggled over the past two years. Real estate agents have also organized tours in California, where the idea seems to have originated, and cities such as Phoenix, Detroit, Kansas City and Jacksonville.

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