Yeah that's great. The developers in California used to start a corporation and get the tax incentives to build, but if they don't sell the houses fast enough, their working capital runs out. Then the developer files bankruptcy for the corporation, he personally makes a ton of money from whatever he could squirrel away and lets the bank foreclose on the half finished project. Who do they think is going to move into the subdivision then, millionaires? Nobody's moving in when the project's in foreclosure, and the people who bought right away feel like they paid way too much and are way more likely to default when they borrowed $400,000 for a house valued at $270,000.
You'll never get the land back but you have a neat little run down subdivision where there used to be hunting/fishing/open space. But the municipalities green light every project as fast as they can so they can get the property tax income to help dig them out of their financial troubles....its a bad place to be if you like being outside at all.
|