Repossessed houses sold at bargain-basement prices

A news item on Yahoo (of all places) nicely sums up the utter corruption of the housing market. After repossessing hundreds of homes and rendering likely double the figure of people homeless, these houses are now being sold at prices lower than a decent second-hand car. Some houses, in areas like Michigan, are going for as little as $5oo, often at a complete loss to the repossessor.

Whilst loss of profits to such money sharks is music to the ears of this blog, it is a bitter blow to those who were forced out of these homes for not being able to meet costs that were way above the price for which their former homes are now being offloaded onto the collapsed market.

This following quote is a concise reflection of the blind, money-minded attitude allowed to exist in the housing market sector:

With prices this low, lenders aren’t looking to make any money on these deals. They just want to get these houses off their books, so they don’t have to bear the cost of maintaining them and paying property taxes

The astonishing part of this is that foreclosures are still occurring. People are being forced out of their homes, sometimes at gunpoint, and there is no guarantee that the people repossessing will ever recover the price of the house at its actual value. So another family has its life destroyed as realtors keep on looking for profits.

Even as the market has shown its utter failure, every government has subjected struggling families to the whims of the market in the battle to keep their houses.

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2 thoughts on “Repossessed houses sold at bargain-basement prices

  1. Meanwhile, money has been handed in the billions to massive corporations on request, and now there has been requests by American states for bailouts. So you have the American government swimming in debt that needs to fund its operations somehow — by printing money out of thin air and causing inflation.

    In addition you have the politicians urging people to spend in order to ‘ease’ the slow times, but even when there’s a boom people are told to spend, because they can. Meanwhile they’re still being taxed to pay the salary of politicians who sleep happily in their expensive homes.

    So what happens when you combine mass homelessness, stagnating economy, hyperinflation, taxation, regulation and the urge to spend? I’ll leave you to work it out.

    And it won’t just hit the US.

  2. Royce, I can only agree with you. As to the prediction, it’s still in the balance, but I hope it’s financial collapse. There’s no other way to end this madness.

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