It’s New York City’s own version of a mortgage bailout – a massive auction today at the Javits Center where banks hope to unload scores of foreclosed homes, some for 60 percent discounts or more.
The bidding for one five-bedroom, $550,000 Queens home starts at a mere $69,000.
More than 4,000 bargain hunters are expected to attend the largest foreclosure auction ever in the city, capitalizing on the misfortunes of more than 375 homeowners who lost their properties to lenders – including federally bailed-out banks.
This is the way it’s supposed to work. Foreclosed homes are resold to owners who will put them to work and the bank eats the cost of their bad business decision to loan money for the purchase of over-valued property to someone who couldn’t pay it back.
A similar thing is happening even in the depressed, third world sh-thole of Detroit, where investors are buying up cheap houses, rehabbing them, and renting them out.
If Barney Frank and Tim Geithner understood this, we wouldn’t be looking at $2Trillion in new Chinese debt.