I’ve said it so many times it’s like beating a dead horse. While the market is improving rapidly in most primary markets, long term growth and sustenance is completely determined by what the banks choose to do with the millions of foreclosed and delinquent homes they now own.
Bank of America started the new trend of banks trying to rent their foreclosed inventory rather than sell it. I cautioned everyone at that time that this program would likely get others to follow suit. That happened earlier this month when Citi and Carrington also launched a similar rental program.
These programs have pulled millions of homes out of the inventory pool and therefore created inventory shortages across the nation. Now it seems that the banks may choose to take this a step further. Bank of America announced that they would actually be giving some of their homes away! That’s right, they want to give away up to 1,000 homes to governmental programs and non-profit organizations.
The homes are slated to go to disadvantaged families who need help. For example, one was given to a military veteran, his wife and young daughter while another was given to a single father of five young children. More than 24 homes have already been donated by Bank of America and they plan to keep on going by bringing other non-profit organizations into the fold.
This is certainly thinking out of the box as a way to rid themselves of foreclosed assets while at the same time building public goodwill and helping out the disadvantaged.
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