It is a simple option... isn't onerous, and doesn't involve the government spending billions of our dollars...
Simply make banks responsible
As it stands, in many jurisdictions, banks aren't responsible for maintenance, taxes, HOA fees or any other impacts their foreclosed properties might have on the community. So, if a block is foreclosed, the homes go to crap while the banks dither at dealing with the inventory. The cities lose valuable tax revenue while they are already struggling because of diving property values. HOAs lose chunks of their budgets trying to maintain properties in their neighborhoods... while not collecting fees from those same properties.
Give banks the bill for THEIR inventory.
This would accomplish several things... to start with, it would tilt the equation from the banks back toward the consumers. As it stands, the banks have little risk in allowing properties to go into foreclosure. Their carrying costs can be invisible.
Short Sales would have a whole new complexion... and even loan modifications. Right now, the banks have little to lose by NOT negotiating aggressively in a short sale or loan mod situation. Currently, if they take back the property, they might not be hurt as much as if they agree to concessions. As a business, they are DUTY BOUND to not try to lose more money. This would increase their risk in holding the property by increasing their exposure to expenses.
I know that it isn't as glitzy as a program costing tens of billions of dollars with a nifty name. But it might be more effective at slowing foreclosures and moving properties through the system when they are foreclosed.
What do you think?
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