The number of properties suitable for rental is bound to increase, as the number of properties currently in the foreclosure process is more than four times the number of properties in the REO inventory. Other options can help with foreclosed houses that have low value and are in poor condition, homes that are not likely to be dealt with adequately through the private market.
For example, land banks could handle some of these properties. Land banks are typically governmental entities that have the ability to purchase and sell real estate, clear titles, and accept donated properties. Properties may be rehabilitated as rental or owner-occupied housing or, in extreme cases, demolished, depending on the needs of individual markets.