Feds begin to look for new solutions to foreclosure crisis

At a hearing called to air “New ideas to address the glut of foreclosed properties,” a U.S. Senate subcommittee met last week to renew discussions on how the country can stem the mounting tide of foreclosures. The hearing was prompted, in part, by a request from President Barack Obama’s administration to investors, asking for ideas on how to turn thousands of foreclosed properties owned by government-backed entities into rental homes. At the hearing, Realtors, builders, lenders and officials from affordable housing organizations all testified. They had some notable suggestions, including several modifications of federal lending programs and bulk sales of foreclosed properties. Read more about some of the solutions discussed in a story by The Wall Street Journal here. According to CoreLogic, 2.38% of all home mortgages in Baton Rouge were in some stage of foreclosure in June, up from 2.25% during the same month a year ago. The national foreclosure average was at 3.46%, the state average 2.56%. Read the rest of Real Estate Weekly here.