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Government Gets First Dibs On Foreclosures

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Leave it up to regulators to ruin it for everyone else.  They get the first right to buy foreclosed properties before anyone else.  That includes families who what to live there.

So what does this mean?  The government will basically get a the good deals and leave the  junk for everyone else.  How does this help anyone?

I think this will in the end hurt the neighborhoods.  Why?  The government is not allowed to make a profit.  They can only break even or lose money.

For Example:  The government gets good deal and they fix it up for a total of $80,000.  Basically they will put it back on the market at $80K and sell to qualified low income families.  Here is the issue.  An investor would be able to sell for $130,000 because that is what the neighborhood can support.  So the government would sell a fixed up house for $50K less than it is worth.  What happens then?  That is a bad comparable home for the neighborhood which will pull the rest of the values down and in the end hurt the neighbors.  How does that make sense?  My opinion is to let captialism work things out (it has so far) and put taxpayer money elsewhere.

Let me know what you think by commenting below.



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