They aren't losing money. The sales price of a home after foreclosure is usually much lower than it's valuation before foreclosure. Over the short term they wil

They aren't losing money. The sales price of a home after foreclosure is usually much lower than it's valuation before foreclosure. Over the short term they will make more money. They are losing the option to make even more money in the future however, assuming that over a long enough timeline the price will go back up when the economy recovers. I am not sure that the way that this is being done is sensible, however I do not think that it will drive business from the city, at least not in comparison to a housing crisis.