But before we get to the longer-term solutions, we need to deal with the unprecedented number of loans in or still entering the foreclosure pipeline, the disposition of properties acquired through foreclosure, and the effect of a high percentage of distressed sales on home prices.
Regardless of how we got here, we, as a nation, currently have a housing market that is so severely out of balance that it is hampering our economic recovery. To many, the story of the recent financial crisis and its aftereffects for the housing market is one mainly attributed to subprime lending.