It sounds like the nation's housing crisis is going to get worse before it gets better. Researchers say subprime lending reached its zenith in 2006. Many of those subprime loans carried adjustable rates which are expected to reset this year and next. That could mean even more foreclosures ahead.

Foreclosed homes take a toll on neighborhoods and entire communities. Boarded up homes lower the value of the properties around them and that can lead to lower tax revenues for their communities.

Foreclosures also carry a special burden for banks. Banks are in the business of loaning money, not managing real estate. But, once a home goes into foreclosure, the lender must maintain the property and pay taxes on it. Also, the longer a home sits vacant, the greater the chances that it will be vandalized.

Some banks, like Wells Fargo Home Mortgage, are trying to get foreclosed homes into the hands of new owners. It is aggressively marketing mortgage renovation loans which allow consumers to get a mortgage for a foreclosed property combined with a loan to make repairs. These plans can often help buyers purchase bigger homes at more affordable prices. They can also help homeowners build equity in their homes more quickly because the value of the property will increase with repairs.

Still, convincing consumers to buy homes, foreclosed or otherwise, may be difficult. In tonight's story on mortgage renovation loans, I interviewed Jim Wheaton, Deputy Director of Neighborhood Housing Services of Chicago. NHS counsels first-time homebuyers and helps them get loans. Wheaton says right now many potential buyers are afraid to buy real estate and some who are interested don't qualify for loans.

So it may take additional interest rate cuts, more confidence in the U.S. economy, and more aggressive marketing by lenders to get these homes off of the market.