How would the Feds release properties? They dont have any ability to do that. The banks arent releasing properties or rushing to foreclose because it would force them to write down their assets and take them out of compliance with capital/reserve requirements. If they are out of compliance they cant lend. If they cant lend, they ar eout of business. The slow bleed will continue because that is their only choice. The Feds are aiding and abetting this all but they cant release the properties.