Bank Bailouts and Foreclosures - What Happens To The Money And/Or Houses?

I think they go to auction and the original owner still has to pay any shortfall.

When home owners do not pay the banks or financial institutions on their monthly installments, the banks or financial institution have the right to claim the ownership of the property in the case of a default. The bank can choose to aution off the properties or rent it out before a new owner is willing to buy the property. When you have so many houses left vacant, it generate no revenue or interest. If a bank meets with a cash flow problem, they may go bankrupt. If the bank has many investments or properties that may mean more retretchments after the closure. In this case, the government may offer a bailout policy (loan) to the bank to reduce the damage. However the control of the business or assets may be held by the government before the "loan" is being repaid.

Because there was no oversight included in the bailout the banks can more or less do whatever they like. I read that some lenders are working with those in danger of foreclosure but many are not so they're still taking the houses. The houses are then offered for sale at auction...at a very reduced rate. If they don't sell, yes, they sit and rot. We have a problem down here in Florida with the number of vacant homes with yards that are not being maintained. This creates not only an eyesore but a hazard since there are snakes down here who like to hide in tall grass.

well i'll bet they dont go back to the poor people that lost them. thats just not what our government or the banks do. as my mom used to say, here the rich get richer and the poor get poorer.