The articles headline read: Non-Profit Trying Stem Foreclosure Flow.
It sounded as if they were trying to help people KEEP their homes. But that’s not entirely true. Some of them seem to be playing the market themselves.
The banks donate the properties to non-profits, take the difference between the market value and sale price as a “donation” to charity.
The non-profits rehab them and sell them to low income people.
Perhaps the non-profits involved here sell them at cost and aren’t making money off the deal.
And even if they did make money but rolled it back into helping other folks, that’s not a bad thing.
But obviously there’s lots of room for profiteering. Consider the “non profit credit counseling” world. They’re all supposedly “non profit”, but many are completely in it for the money.
I doubt the nonprofits mentioned in the article are profiteers, but it’s a gray area ripe for abuse if profit seeking entities create “non profit” subsidiaries to play this market.
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