TenantAccess says it has an answer to that looming “shadow inventory” of foreclosures and REOs that so many analysts fear could get in the way of the nation’s housing recovery and lead to a second round of price deterioration for residential properties. The company’s solution – rent them out.

First American CoreLogic estimates that there are 1.7 million homes lurking in the shadows that have yet to hit the market. A recent study by Lender Processing Services (LPS) corroborates the magnitude of the industry’s supply of foreclosed homes not accounted for. As of October, LPS said, nearly 30 percent of properties that have been in foreclosure for 12 months have not yet been put up for sale – twice as many as a year prior.

“There are potentially millions of homes yet to undergo the foreclosure process and be put back on the market causing the rapidly growing shadow inventory,” said Paul Hayman, president of Austin, Texas-based TenantAccess.“More foreclosures mean more idle assets and stranded properties leaving banks and investors with two choices: Ride out this long storm or rent the vacant houses to offset holding costs.”

TenantAccess says it can help lenders, servicers, and investors turn the growing backlog of residential foreclosures into leasing cash flow. The company’s offerings include deed in lieu leases, lease and hold, and rehabilitate and resell programs, as well as a program to help servicers and property managers respond to the Protecting Tenants at Foreclosure Act – all of which are designed to automate the management and processing of “shadow” foreclosures.

But as more firms inevitably turn to leasing, Hayman says they are faced with the daunting task and increased expense of creating a scalable program. He says that’s where TenantAccess can help.

According to Hayman, by combining technology with proven services and programs, TenantAccess offers a “straightforward end-to-end solution” to convert foreclosures into revenue-generating assets.

TenantAccess has established a national presence through its network of local property managers. Through its partnership with Field Asset Services, the company also provides property preservation, REO maintenance, and repair services.