So if no one buys these homes, they're just going to be allowed to deteriorate? Many things could be done with empty homes. For instance, the government could buy them, and then reuse the properties as low-income housing, something our country is always in need of.

If the Federal Government isn't going to refurbish foreclosed properties, then they should find a better solution for this exponentially-growing problem. Fast.

I would rather local governments provide extended tax abatements and offer expedited permit services to woo buyers of foreclosed homes than create more bureaucracy.

Rachel says, "the government could buy them, and then reuse the properties as low-income housing..." For those of us that have lived through a housing bust and have seen properties turned into Section 8 housing for low income people, the ripple effect is devastating. Entire communities are affected negatively.
Prices on the east and west coasts have been ridiculous and stupid. No one, especially the government, should bolster or reinforce business or lending practices that lead to such widespread failure. CEOs, CFOs and others are culpable and in the end, market forces should and will prevail.

Banks, mortgage and credit cards were once service industries. Now their margins are created by penalties and over the top interest rates. They have driven the current market by their greed. The government should only assist lenders who are willing to lower interest rates and reign in penalties. When a lender doubles the monthly payment with penalties and doubles the interest rate at the same time I see no reason to help them out of their self dug hole.

For those of us that live our lives in a financially responsible manner, this is a slap in the face and the wallet (the taxpayer is ultimately going to fund this goat rodeo). If a lender forecloses on a property and takes possession of it, the lender should be responsbile for maintaining it in salable condition inlcuding lawn maintenance, painting, security, and so on. People in these neighborhoods should not be left to clean up the mess. If this was the law, then perhaps lenders would be more careful in how they make loans. This is just another case where personal respnsibility and accountability goes out the window in favor of a rescue plan or bailout. The American taxpayer simply cannot afford this measure when the infrastructure is crumbling and we have no workable energy nor foreign policy.

I generally think federal solutions are the least attractive solutions because they are so far away from the ground where the real problems are. Part of the self-correction of our system happens when we let the chips fall where they may. I'm not opposed to helping people who have gotten into a fix, but the long-term effect of a bailout is to relief a person or company from the consequences of their actions and keep them from learning the lesson that life is trying to teach them. Federal 'blanket' solutions do this to the greatest degree. Local solutions offer the flexibility and community knowledge to help in a way that, perhaps, softens the blow but preserves the life lessons.

My house in Florida has gone from $340k at the height of the bubble down to a realistic and reasonable $230k. It was clearly a bubble and I am not devastated by the loss of $90k in equity because it's money I didn't ever have in the first place.

For those of us that live our lives in a financially responsible manner, this is a slap in the face and the wallet (the taxpayer is ultimately going to fund this goat rodeo). If a lender forecloses on a property and takes possession of it, the lender should be responsbile for maintaining it in salable condition inlcuding lawn maintenance, painting, security, and so on. People in these neighborhoods should not be left to clean up the mess. If this was the law, then perhaps lenders would be more careful in how they make loans. This is just another case where personal responsibility and accountability goes out the window in favor of a rescue plan or bailout. The American taxpayer simply cannot afford this measure when the infrastructure is crumbling and we have no workable energy nor foreign policy.

I disagree with this comment. While I do think the lenders significantly contributed to the current situation, consumers have to also be accountable. My experience is that intent of local government is to purchase the foreclosed homes, refurbish them and turn around declining neighbors by attracting homebuyers interested in being part of change, and therefore infusing income into these communities, establishing a sense of pride and unity. Also, the foreclosed home becomes less of a drain on the bottom line of the lender, therefore aiding in keeping the company in business and retaining jobs.

Unless a house has people living in it 'in a good way', it is not a home; it is a box. You can live in a hovel and have a home, but I've seen plenty of empty shells populated by people with more money than most of us can count and no 'heart' or 'togetherness'..
Past that - these buildings should not be allowed to deteriorate - that's a waste of resources. Then there's the matter of low-income housing and helping people get a house for small dollars and a lot of sweat equity. That's called 'caring'. If these buildings are too big for one family, they could be inexpensively partitioned into co-ops.. Then, until someone buys these foreclosed properties, the owner of record (banks and other lenders) should be required to maintain them so the property values of the neighboring properties don't drop and 'the taxpayers' (that's not a job description after all) aren't forced to foot the bill and further strain themselves for no benefit to themselves.
I don't see that we should bail out only the lenders - they created this mess with their irresponsible lending. There are plenty of people who could put these buildings to good use, with perhaps some help from "us, the people" via "the government" we form. Michael Biggoney has a good idea - expand on that....

Empty homes can be bought by responsible citizens who have a job and meet the qualification to apply for a home loan. Empty homes are wonderful buys, for example, for first time home owners and there are many first time home owner lending packages. No empty home is left to deteriorate. It is either bought or sold. Economics 101 or equivalent research will the truth of how capitalism works best, i.e., with less not more government intervention. We are Americans. We have American know-how. Use it and be responsible to pay back loans and not take out ones you cannot reasonably expect to pay back.