Somewhere around 80% of the homes that make it through to foreclosure sales return to the banks and servicers that are (ultimately) named in the foreclosure lawsuit. (After a few substitutions of party plaintiff along the way.)
The notion that foreclosures help the community by getting these homes back into the hands of “deserving” families is a delusion. The vast majority of homes ultimately wind up in the hands of private investors….
BLACKSTONE IS THE SINGLE LARGEST OWNER OF HOMES IN AMERICA
This is a critical fact to understand….it means the whole of the foreclosure process operates to benefit the general public and larger good. The “public” foreclosure auctions and indeed the entire process are being operated not like a public part of our shared legal system, but like a private country club…..and none of us are even permitted to look inside.
They are rigging the bids and manipulating the market, bidding up properties in ways that are not economically rational….but they continue to get away with it. Hell, no one has even examined this phenomena or considered what the implications are. But we should all do so…and do so quickly because one of the cornerstones of the system of government that used to be ours…private property ownership….is being ripped away.
