I came across this a couple weeks ago and it crossed my mind today.  I like the idea of it but can’t imagine cash-strapped Columbus, Ohio jumping to buy foreclosed homes and to what end.   Columbus hasn’t always been known to take great care of properties they do end up with and there isn’t a great process currently in place for the city to unload the properties they do have.

I’d rather see each city choose a representative non profit that helps put people on the road to home ownership and give them the first crack because this is what they do. For example, Ohio Housing Finance Authority or Columbus Housing Partnership, educate people on home ownership and then help them along the process with everything from grants to actual homes.

Compounding the situation, is the BOA assimiliation of Countrywide and the vast foreclosure inventories therein. Here is the original article…

Bank of America is making it easier for states and cities to buy foreclosures before investors purchase them.

The program is a result of the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program, which aims to encourage redevelopment of neighborhoods hit hardest by foreclosure and the resale of properties to home owners.

Bank of America will notify participating cities that properties are available before they are listed on multiple listing services. The company will set the prices with no haggling allowed.

“We’re balancing our desire to work with communities that are struggling to stabilize with our fiduciary duty to the investors that hold the paper on all these properties,” says Rob Grossman, senior vice president of community affairs for Bank of America. “We will offer them the best price.”

Source: Chicago Tribune, Mary Ellen Podmolik (06/19/2009)