To help distressed cities recover, managed sales programs are a better way to sell abandoned properties than are auctions, a new study says.
Managed sales through land banks or city planning departments can lead to more owner-occupied homes, additions of side lots to homes and businesses, and less property flipping, says Margaret Dewar, professor of urban and regional planning at the University of Michigan.
Population loss and employment decline in many cities nationwide have led to thousands of abandoned properties. As a result, owners stop paying property taxes, which sends the property into foreclosure. The governments then sell tax liens or sell the property at auction, depending on state law.
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