The reason is because the govt would be paying the banks 45 cents on the dollar for a mortgage worth 20 cents on the dollar, then the govt would be a landlord with a renter who cannot afford the rent. Taxpayer screwed, socialist action, unnecessary govt. intervention. The bank can do one of two things: negotiate with the “owner” to knock off 80% of the loan principal, or the bank can go bankrupt and get out of our face. It’s between them, not us.
Is the Fed going to pay the local property on these homes?
Or are they exempt?