Banks Demolish Foreclosed Homes

October 14 00:00 2011

New York, October 14 ( – The residents of Cleveland, Ohio have been witnessing an unusual sight in the past few days. Many banks including the biggies like Wells Fargo, JP Morgan Chase, Bank of America etc. are demolishing the properties they own. They are doing so in order to restore a demand supply balance.

Right now, there are too many houses and too few people wanting to buy them. Most banks have been holding these properties ever since they were foreclosed in 2008-2009. They have been saddled with the upkeep of the properties, paying due taxes to the government as well as paying for marketing these properties. In most cases, banks feel demolishing them is the best way to get rid of them. Thus, they are even spending money on demolition which sometimes amounts to as much as $7000-$8000 per property.

The residents are also shocked as they see banks donating properties to a municipal land bank so that they can be put to better community use. Many properties are being brought down to make way for gardens, churches and parking lots.

Banks are hoping that this wave of demolition will help them cut maintenance costs as well as improve the values of other properties in the neighborhood.