I live in SE Florida and homes all around me in what used to be a really lovely neighborhood in the heart of Palm Beach county (yet we are still unincorporated here) have gone back to the banks. But the BANKS arent keeping the properties up and so they look like nature reclamation projects with vines and weeds and long grass. It looks hideous and that by itself brings down the value of MY house. So anyone who is willing to come in and purchase those properties and maintain them I am all for it.
I hate that people had to lose their homes...I am not of the delusion that it wont or cant be me next...but its a process and a cycle. That whole buying frenzy a couple of years ago is what CAUSED this current forclosure slump. People bought ANYTHING for inflated prices thinking they were gonna flip em and make a quick buck. Well they got stuck with them and the banks got stuck with a boat load of bad loans because they participated in this frenzy as well, loaning money to people who were NOT qualified for it in the first place. Now the banks are stuck with a lot of bad properties, huge outstanding loan debt and homes worth a third of what they wrote mortgages on them for.
Its a life lesson for damn sure.