In addition, we need to make sure that we are using all of the available public-sector capacity – such as state housing finance agencies and local public housing authorities – that have experience managing affordable rental housing inventories. Finally, we need to do more to explore creative solutions to speed the acquisition of REO properties so that they do not languish vacant.
Given the likely number of properties that will enter foreclosure and the time and resources involved in the foreclosure process, financial institutions can help minimize the cost by developing clear policies and procedures for approval of short sales and deeds-in-lieu-offoreclosure. For homeowners who cannot, or no longer wish to, stay in their homes, such strategies release them from their obligation and avoid foreclosure.