Memphis Housing and Community Development has started addressing the problems of rising Memphis repo homes. The city government agency has formed a makeshift task force that would deliberate issues and move to prompt housing market players to cooperate in mortgage default and foreclosure prevention actions.

The task force has been divided into several committees that each would focus on legality of problems and even employment counseling initiatives for homeowners. There is even a committee that would set up and draft definitions and job descriptions for every committee. The formation of the task force is deemed as a little and slow effort to curtail Memphis repo homes. Results are expected to eventually show up.

There have been a combined 58,000 Memphis repo homes since 2000. The city government is estimated to shoulder about $20,000 for each foreclosure through maintenance costs. Overall, the task force notes that total local government expenditure for foreclosed homes in the city has reached up to $1.2 billion.

How does the task force intend to enforce action that will directly curb Memphis repo homes? First, the group intends to solicit or enforce cooperation from lenders. First Tennessee Bank, the initial member bank of the task force, is set to persuade peers and other lenders to join the initiative. The task force will also file class action lawsuits against lenders and foreclosed sellers, which inappropriately and illegally commits blunders in foreclosure processes.

The group will also analyze available data, and determine the unknown, to better understand the current situation. Also in the target are loan firms that appear to have targeted several minority communities in Memphis through offering high-loan cost and abusive mortgage products.