That might also help clear the glut of otherwise-cheap properties that cannot be sold because millions in back taxes have accrued that have to be paid by the buyer.
If the government buys and resells them, they can make a profit and clear the outstanding taxes that are making these properties sit vacant.
(I may have misunderstood how that law works, though, and welcome corrections. I just know there are burned-out wrecks and mansions alike on sale for $1 or so, plus $a million billion in property taxes)