A bad debt is worth nothing. A toxic asset costs even more money.

For example, a house which has been foreclosed upon represents lost house payments. But it also represents extra costs in repossessing, refurbishing and reselling it. In some cases, the home has been allowed to go into such bad condition that the lender refuses to foreclose on it. Ownership floats in limbo, and the property soon becomes slummy. And nobody knows what to do about it.

Apparently we don't have laws and procedures in place to deal with property that interested parties refuse to own.

That seems to be the theoretical part. The practical part is that these properties are in the control of people who think a screwdriver is a cocktail and have never heard of, much less used, the other kind.