I was doing good before you showed up…

5 Apr

From the world renowned huffingtonpost we have this gem today,

Banks Fail To Maintain Foreclosed Homes In Minority Neighborhoods: Report

There’s so many simple points that the writer fails to see I actually feel embarassed.

Banks don’t market houses in low-income areas? This is an outrage how could this happen?

Perhaps it’s because it costs money to market and maintain houses and houses in poor cities have low prices that these costs will take a chunk of change out of the profits.

Maybe it’s because it’s difficult to find maintenance workers in inner-cities? I imagine a survey of landscapers from Gary, Indiana or Compton California would verify this claim.

Maybe it’s because those living in poor neighborhoods don’t actively look at real-estate and it’s therefore pointless to place local real estate sales guides in the exit area of the local stores. I know my mom, along with millions of other suburbanites, grabs the free local real estate guide from the store on a fairly regular basis. She’s not going to buy a house right now, she just enjoys looking. But if the market wasn’t blown-out, she might and that’s why the guides are placed there. For her to take home and look at local real estate offerings because she is who they make money from.

Let’s face it, people in the inner-city don’t move around within the inner-city so they can be closer to a different school, or work, or in a quieter area with an older crowd. Suburbanites, however do do these things. They actively look at houses and buy and sell them like they’re kids with baseball or pokemon cards, a bank can make money there.

Lastly, is it perhaps at all possible that these homes are not simply unmaintained now that they are in the banks care, but rather that they existed in that condition even before they became foreclosed? Drive through Detroit and please tell me if you notice a significant difference between the house on this side of the street that is empty and the one on that side that is an occupied living space.

There’s many reasons people don’t flock to poor areas; schools, services, safety, etc. But another reason is because of price. Sure you can easily find a $15,000 home in Detroit, but you get what you pay and just how good can a house that costs the same as compact car be?

 

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