Foreclosure numbers throughout the US are only increasing. They are especially prevalent in the hardest hit areas like Nevada Real Estate, Phoenix Arizona Homes, and Fresno CA Homes, but they are everywhere. The number of home buyers isn’t exactly increasing either. If we wan’t to really get rid of the massive quantities of REO homes, we need to do something different. I really like what Elizabeth Duke suggested about what should be done regarding foreclosures:
It is not sufficient, given current economic conditions and the significant needs of our neighborhoods, to do things the way we have always done them. Homeownership, long promoted by federal policy and facilitated by local housing organizations, cannot and should not be the only alternative for REO properties. Indeed, redevelopment strategies profiled in the conference publication include rental housing, lease-purchase, and even converting owners to renters to avoid vacancies. Including rental options among the mix of stabilization strategies makes particular sense at a time of high unemployment. Even in the best of times, homeownership limits mobility in the labor market.
Today’s summit and companion publication also highlight several promising models of “non-redevelopment” to stabilize communities, such as simple code enforcement, land banking, and demolition. The scale of the problem is such that communities must consider a variety of strategies to repurpose REO properties within the context of a comprehensive plan that addresses a variety of community needs. Only in this way will our neighborhoods be restored to health and vitality.