Link: http://jischinger.wordpress.com

Jischinger on his/her? (dunno) blog recently posed the question about how we should deal with the glut of empty houses on the market. I felt compelled to respond:

Who really owns these 'surplus' houses? Do they come from a cache of government backed foreclosures? Or are all empty houses fair game? And if so, what about the real owners of these properties? How will they be remunerated? Should they be grateful for having their property seized by the state to help institute fairness in society? And yes I include corporations and banks in this question.

What about houses in upscale neighborhoods that come with high maintenance costs and HOA dues? Will the people who 'win' this house be given a special dispensation not to maintain or pay their fair share to the HOA community? What about the rights of the Community when ‘The Beverly Hillbillies’ move in? What about the majority of hard working people who have paid full price for their investment? People who have not gotten themselves into trouble, only to have the guy next door given a house for half the price and feel no obligation to maintain it adequately?

What about the rights of the existing homeowners when these properties are sold at less than fair market value consequently depressing market values even more.

There are many empty abandoned homes that have been gutted of fixtures and wiring. Or have deteriorated due to neglect. Some of these homes will cost more to repair than to raze and start over. Do you suggest that the people who win one of these homes should just be thankful for their good fortune and do all that they can to make a silk purse?

Lowering the lending standards on FHA/VA loans is what started this whole mess. Government mandated ‘fairness’ and social meddling in affairs of the market created too much pressure to include everyone in home ownership although home ownership is not a right. Do you propose that we move further down that road?

This is more complicated than just redistributing the empty houses.