Vacant properties continue to drive down home prices in many areas of the country, but according to HousingWire, a new bill introduced to Congress could call on government-sponsored bonds to fund the demolition of foreclosed houses in disrepair.
Not only do vacant properties have a negative effect on surrounding home prices, they can give way to a number of other issues, such as squatters, which can result in rising crime rates.
However, the bill, which is being spearheaded by Congressman Steven LaTourett, intends to curb the issue. Numerous states with high foreclosure rates, including California, Nevada and Florida, have run out of money to fund demolitions on their own. If the bill passes, it could change the face of how states with rampant vacancy issues deal with the problem.
Details of how the bill would work have yet to be released, but in the wake of a multibillion-dollar settlement between the nation's largest lenders and homeowners who were wrongfully foreclosed on in recent years, this could be another major step toward a real estate industry rebound.