Foreclosure StrategyTo solve the foreclosure crisis, we must take a multi-pronged approach that addresses the issues that are making the situation worse and that caused the problems in the first place. Our goal is to do this efficiently and as quickly as possible. Any solution will have its positive and negative aspects, but we must try to maximize the former and minimize the latter. The biggest problem is that we have had and still have overinvestment in real estate which has led to an overproduction of housing. In other words, we have too much supply. This massive oversupply has led to a decline in property prices. To remedy this, we must either increase demand or decrease supply. Although I will discuss ideas for achieving both a reduction in supply and an increase in demand, I believe that stimulating demand will be more productive. However, if we increase the number of home buyers at the expense of owner renters, we will still cause significant damage. Also keep in mind that the U.S. population is growing at about 1% per year and if left to natural mechanisms, it will take years to absorb the excess supply. First, let's try to resolve the issues that are making the situation worse. We'll quickly address oversupply issues and then move on to demand-side solutions. One reason for the housing oversupply is that many people who can afford their homes are moving out due to negative equity in their homes. Negative home equity means that the remaining mortgage debt is greater than the current price of the home. Statistically, most people who forgo their mortgage payment have negative equity. They made a financial decision to buy a house at a certain price, but since the current price is lower, they don't... middle of paper ...... after 3 years, 20% of your initial inventory allocation is allowed to be sold, then during the fifth year, 30% can be sold. At any time during this period, if it is deemed that bonuses have been incorrectly awarded due to poor performance, the balance may be reclaimed. This incentivizes doing what is best in the long term and should eliminate many of the bad decisions in the short term. This document was written to provide a general overview of some steps that can be taken to decrease the supply of housing, increase the demand for housing, and resolve some of the problems that created the housing bubble. It is not exhaustive as there are more things that can be done, but I have tried to include some of the most relevant ones. This multi-strategic approach not only helps solve the housing crisis, but also plays a key role in economic growth and provides positive long-term incentives..