Bank of America Donating Foreclosed Homes
Bank of America is donating -- and in some cases bulldozing -- some of its foreclosed houses, according to Boston.com. The paper reports that the bank will donate 100 Cleveland-area homes located in communities eligible to receive grants from the federal Neighborhood Stabilization Program.
The lender is not being purely charitable, though: The giveaways actually help the bank more than they hurt it. By ridding itself of the dregs of its foreclosed homes, the bank foregoes the hassle and cost of selling them.
It makes financial sense when you think about it: There are many costs to selling a foreclosed home. One biggie is upkeep. Abandoned homes deteriorate quickly and are vulnerable to a range of value-killers like infestation and vandalism. This susceptibility is illustrated by the mold epidemic blighting foreclosed homes across the country, which NPR reported about recently.
Banks are not in the business of selling houses, and now they're cutting the worst ones loose. So bid adieu to the 100 shoddiest digs in the Cleveland area.
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For more on foreclosures and related topics, see these AOL Real Estateguides: