Now here’s one to reduce the oversupply in the housing market. As the reluctant owners of vast amounts of foreclosed and abandoned houses it can’t sell, Bank of America is going to start bulldozing patches of them.
The bank is working with local housing partnerships to donate some of the houses and pay for the demolition of others. BofA will pay as much as $7,500 per tear-down. Some of the houses are worth less than $10,000.
They’re giving up 100 properties in Detroit, 150 in Chicago and will be doing the same in nine other cities.
“Donating a house may create an income-tax deduction, said Robert Willens, an independent accounting analyst based in New York. A bank might deduct as much as the fair market value if a home wasn’t acquired with the explicit intent of knocking it down,” reports SF Gate.