Often the homes in extremely bad condition and are foreclosed upon will be bulldozed by the banks, this opens up the land to new development from people who may have been interested in the building on that land but did not want to incur the cost of bulldozing and getting rid of the existing structure.
The bulldozing of blighted properties by banks helps the communities. If the old properties were allowed to remain, they would just turn into flop houses and drug dens for the criminals. The banks are doing a great service by tearing these eye sores down and hopefully a better structure will go up.
I think that when the bank goes in and bulldozes a property that it does a lot of good for a community. I think that it makes the community look a whole lot cleaner, and that it is a good thing to do to make a good impression on people.
The reason this hurts community is because this bulldozing is usually knocking down local shops that have been helping the local economy for years, and providing workers fair wages. A lot of these land and shop owners give in to the prices they are offered. Can't blame them though, it's a lot of money.
I think that when banks take over or buy properties, it is their right to do whatever they want with it. A lot of the times, some of these properties are foreclosed or abandoned homes or building. Bulldozing such real estate can only help the communities since it helps to bring better financial prospects.