Know anyone on the Obama transition team? Pass this idea along to them, see if they can indeed think outside the box:
Sell the glut of houses to immigrants. It will cost taxpayers nothing. All that Congress & the President would have to do is to authorize those who are already on the waiting list, and have the money to buy a house, to come on in.
Even administrative costs would be minimal. Those who can show the financial ability to buy a house could get temporary visas to come in (I would not want them to buy a house unseen), pick a house, and make the arrangements. When the money is transferred and the new title recorded, they get their green card and can occupy the house.
The entire surplus of American houses could be disposed of in six months to a year. Housing prices would stop falling, so people would (mostly) stop defaulting on their mortgages. Banks would be saved.
Cost to tax payers: zero.
The anti-immigrant types might scream, but we would not be letting in more immigrants in the long run. Just speeding up the current program. Quotas would remain the same, so legal immigration would slow for a while once the program was completed.
I just can't think of anything wrong with this idea, except that it does not involve giving away taxpayer dollars, and most politicians are too spineless to tack into the the anti-immigration headwinds even when the benefits to the United States of America are so obvious.
Pass the idea along.