Re:How California Became America’s Housing Market Nightmare
by Fainsan on Wednesday November 06, 2019 @06:26PM
(#21468709)
Adjustment of Home Values. If any given area is selling at levels higher than standard median income allows and that given area is experiencing a higher than average number of Foreclosures (or pick a reasonable threshold), requirements should be in place to ensure that if a home defaults, it doesn't go back to market at those same values, but lower. After all, if you go strictly by banks rules, housing costs shouldn't be over 35% of income to hopefully prevent this from reoccurring.
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Re:How California Became America’s Housing Market Nightmare
by helen___keller on Thursday November 07, 2019 @03:23PM
(#21476920)
I'm not sure I understand. Firstly, banks can't offer their foreclosed assets as significantly less than market rate because homes are used as collateral in a mortgage, so they'd have to just stop offering mortgages, which means only cash buyers get homes
Secondly, even if a bank did offer the foreclosed homes much cheaper, it won't fix gentrification, it just means whenever a house gets foreclosed a bunch of cash buyers swoop in and flip a house back to market rate for a free profit (or realistically, hold a bidding war and end up paying close to market rate anyways)
It doesn't make logical sense suggesting a bank has any power to change market rate (whether that's an asset bubble or genuine demand)