A credit union in Memphis, Tenn., has struck upon an approach to its foreclosed properties that could provide an example for both credit unions and banks on how to address the large stock of real estate they have come to own.

The "Home Run" program will allow financially stable members who have poor credit histories, an inability to obtain mortgage financing and lack a down payment to purchase the real estate owned by the CU. According to the credit union's September Call Report, MATCU has foreclosed and repossessed 34 real estate loans worth $1.8 million.

Members in the program will rent one of the MATCU-owned homes for two years, make regular monthly payments and attend a financial education course offered by the RISE Foundation, a Memphis area housing organization. At the end of the two-year period, the CU will sell the property to the renters for less than its tax assessed value and apply the members' two years of rent as down payment.