What does this mean? That the taxpayers pay every mortgage in jeopardy in full? THat friggin guy is just so stupid.
Everyone needs to take a deep breath. The proposal on the table is that mortgages be rewritten to real market values and real interest rates. If folks can't pay THAT then they get tossed. If they can, the mortgage gets rewritten and the idiots that made the mortgage or bought it lose.
I don't think that is entirely unfair to either side. If we toss the current occupants out and put the houses on the market, condition will deteriorate, and we will have vast neighborhoods of derelict and decaying houses that will be worth little more than the vacant land less the cost of clearance.
Remember that there were multiple idiots and scoundrels in these transactions, not just the idiot buyers. Builders, developers, real estate brokers and local pols were on the take too.
OTOH if it is not a primary residence, but you just bought to flip, then they ought to take the house and all your other houses and clean out your bank accounts and put you on the street.