Tuesday, October 25, 2011

Consequences of Burst Real Estate Bubble

A local government official in Livingston County, Michigan reports that the local government is stuck with the bill for water and sewer installation after the real estate developer went bust. The local government exercised its tax lein and put the land up for auction. Since prospects for development are slim and there are few buyers, a parcel may sell for $50. Under Michigan law, the developer may later buy it back for the auction price. If housing demand picks up, the delinquent developer makes out like a bandit. If not, the developer is only out $50.

The "Occupy Wall Street" people probably don't know these details, but they know the sstem is rigged in favr of the rich and they are mad as hell.

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