Law School center to White House: How to curb mortgage foreclosure crisis
The Obama administration has asked for ideas about how to make headway in the government’s battle against the tide of mortgage foreclosures that has swept the nation over the past three years, and the scholars at the Eugene and Carol Ludwig Center for Community and Economic Development at Yale Law School have given the White House their best advice.
In a white paper submitted to the administration on Sept. 15, the center’s scholars recommended, among other things, that the federal government:
- Hold properties and convert to rentals where appropriate to preserve housing values, minimize taxpayer losses, and prevent further erosion of the housing market;
- Consider pre-foreclosure strategies to reduce the number of homes going into foreclosure, even if that means incurring federal debt to do so;
- Decentralize operations to allow tailoring to individual housing markets, based on detailed market data, and to address significant regional obstacles to disposition;
- Partner with neighborhood-based leadership, resources, creativity, and initiative; and allow displaced homeowners to return to former homes.
Read the complete story on the Yale Law School website.