Do you have any idea how financial markets work? Do you realize just what it means for the government to declare what interest rates are going to be? Do you understand how amazingly stupid it would be to have “stable” interest rates? Do you have any clue how much permanent damage stopping foreclosures would do to the housing market?
All free economies to survive require some failures. Foreclosures are good and necesary.
intestingly the Mortgage granters thought they had a fix when they revised the bankruptcy laws to TRY and eliminate lien stripping from undercollateralized homestead properties. Under the old system the unsecured portion of the loan could be stripped out and placed in the non priority under securied creditors.
The secured portion of the load would continue.
Under the new rules, it is just easier to dump the whole property and buy something else by paying a few percentage points higher on the lower valued housing market.
The mortgage lobbyists who wrote that portion of the bankrupcy code got exactly what the wanted. (this is the part we chinese proverbs about getting what you want)