Foreclosures often lead to rising vacant properties and decreasing property values. By taking steps to bring foreclosed properties back into productive use, state and local governments can reduce the negative spillover effects of foreclosures and help restore stable communities. Many of the tools for reusing foreclosed properties have roots in vacant and abandoned property initiatives. Learn more
[PDF] in the Foreclosure-Response working paper "Stabilizing Communities Affected by Foreclosures: Lessons Learned from Vacant and Abandoned Properties Initiatives."
This section divides the numerous tools for reusing foreclosed properties into two main roles that communities can play:
Streamline Private Sector Disposition of Foreclosed Properties
States can help to reduce the destabilizing effect of foreclosures on local communities by facilitating the reuse of properties by the private sector.
Acquire, Rehab, and Manage Foreclosed Properties
In some cases, states and local communities will choose to directly take on responsibilities associated with the acquisition, rehab, and management of foreclosed properties.
Photo credits (L to R): Westminster Place, St. Louis MO -- Courtesy of McCormack Baron Salazar; Erin Place, Eagan MN -- Courtesy of LHB, Inc.