Do the banks get some sort of tax write-off on foreclosures?
A neighbor just moved after buying a house. They had been looking at foreclosed houses, but they were still too high-priced compared to the other houses, and in much worse shape. Some had been sitting on the market for ever with no price reductions.
He said he found out where the gov’t gave the banks some sort of “insurance” to give them a certain percentage on the loan or something - so basically the bank wasn’t going to lose money on the house - even if it didn’t sell. (Or something like that).