Photo: genista via flickr
With 40,000 foreclosures burdening its books in the first quarter alone, Bank of America (BAC) will begin bulldozing and giving away abandoned homes it can’t sell.According to Bloomberg, BAC will hand over 100 homes to a local agency in Cleveland, with similar plans scheduled for Chicago and Detroit (via Yahoo).
Wells Fargo, Citigroup, JPMorgan Chase, and Fannie Mae are also involved in, or considering, programs of their own.
“There is way too much supply,” said Gus Frangos, president of the Cleveland-based Cuyahoga County Land Reutilization Corp., which works with lenders, government officials and homeowners to salvage vacant homes. “The best thing we can do to stabilise the market is to get the garbage off.”
The lender will pay as much as $7,500 for demolition or $3,500 in areas eligible to receive funds through the federal neighbourhood stabilisation Program. Uses for the land include development, open space and urban farming, according to the statement. Simon declined to say how many foreclosed properties Bank of America holds.
The list of homes to be bulldozed are vacant and in some cases worth less than $10,000.
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