Banks say governments, nonprofits will get first chance to buy foreclosures in new program

01st September 2010 | Category: General

You’ve got to be kidding me… I’ll leave it at that.

WASHINGTON (AP) — Major banks are agreeing to give local governments
and nonprofit groups the ability to buy foreclosed homes before they
are sold to private investors.

The Obama administration says local
officials could benefit from acquiring these properties and using the
land for redevelopment projects. Congress has provided $7 billion in
money to buy the homes.

These groups have been outbid by speculators who are snapping up foreclosures.

The
administration says the largest mortgage lenders in the country,
including Bank of America Corp. and Wells Fargo & Co. have agreed to
let the groups purchase the properties ahead of private speculators.