Bank of America uses bulldozers to rid glut of homes

In 2005, America had a shortage of homes. Today, its banks are using bulldozers to get rid of the oversupply.

Bloomberg reports that the Bank of America has a glut of foreclosed homes that it can not sell. In June 1,679,125 were in some stage of foreclosure. Flooding the market with the surplus homes further depresses the market and scares of buyers who are waiting on the sidelines for the bottom of the market.

The banks are now donating homes and contributing funds to their demolition through the federal Neighborhood Stabilization Program, with the lender paying as much as $7,500 to have the homes demolished. Homes earmarked for demolition are believed to be in varying states of disrepair and with such a glut of properties on the market, there is no prospect of anyone buying them.

ยป BofA Donates Then Demolishes Houses to Cut Glut – Yahoo Finance, 27th July 2011.


  1. It is sad to think about the limited world resources when they have been wasted, and peoples lives disrupted to make a quick buck by large financial institutions. I know it occurred due to a complex combination of many things including govt deregulation and corporate greed but also greed by consumers wanting more and more.

    I am watching the US debt crisis with much interest……

  2. MissMoneyPenny,

    I have to say that it is the fault of the individual more than anything that has brought us to this, if the individual used a thing called a brain and not been such a greed ridden creature we would be living in a different world today.

    Government and corporations can say and offer what they like, it is the individual that pulls the trigger.

    This latest piece :

    Only cements my view of how stupid the average Australian really is, with rates on the way up what do they expect to really achieve? More fools expecting more for less, the root of the whole financial mess.

  3. MissMoneyPenny,

    “I am watching the US debt crisis with much interest”

    The US is screwed. I am waiting for the Australian Debt Crisis that is unfolding and really gaining some steam……

  4. I note 10,000 mortgage stressed borrowers have already signed up for the Choice bank pressure thingie. in a day or so.
    Good luck with that.
    To me it shows how desperate people are to reduce their living costs, maybe bake beans and sausages gets a bit boring after paying the monthly mortgage payment.
    Get use to it, I love the stealth of debasing the currency, no one knows, but the effects are obvious. Stagflation has arrived.
    Deflation is a bitch, as equity vanishes leaving the debt for all to repay.

    Australians will get what they deserve, whether it be a communist like government destroying the people’s wealth and freedom, or debt slavery because of large borrowings to speculate in housing.

    I hope all enjoy the drive to work today, and smile as they now have no choice but to work for the best part of their lives, service the debt, pay your tax. Welcome to the United Nations.

  5. Nice day on the market, A bulldozer has just rolled over the stock market today. Was it BOA?
    Down 2.3% with about 3 cents off the $AUD in 24 hours.
    Do you think some money is leaving the country? Is the cat out of the bag? Has the Ju-liar bird got any clothes on? Is Wayne still bullish on our economy?
    When does the first $3 billion payment go the UN for Carbon Dioxide emission contribution???????

    Yoda now thinks Debt is crashing the economy…….or lack of new debt.

    We are going backwards as the sheeple are paying down debt. Should be some heated debate by about XMAS. CUT CUT CUT will be the calls from the mortgage belt and the empty shopping centres.

    Bring on the Carbon Dioxide Tax – it will fix the economy as well as the environment. Good one
    Yoda need to lay off the grog when investing.
    On a bright note , at some point down the road there will be fantastic asset bargains up for sale.

  6. “as they now have no choice but to work for the best part of their lives, service the debt, pay your tax.”

    Well, yes, but for most, especially in Sydney, it’s still not too late to sell up and pay off that debt. But the window is narrowing…

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