[Sefton]

That one nearly killed me but... what if, when the government “renegotiates” the loan, the govt gets a lean on the property for the amount they forgive or interest rate costs incurred?

[topfile]

This is what the "rescue" bill already says...

SEC. 109. FORECLOSURE MITIGATION EFFORTS. (c) CONSENT TO REASONABLE LOAN MODIFICATION REQUESTS.— Upon any request arising under existing investment contracts, the Secretary shall consent, where appropriate, and considering net present value to the taxpayer, to reasonable requests for loss mitigation measures, including term extensions, rate reductions, principal write downs, increases in the proportion of loans within a trust or other structure allowed to be modified, or removal of other limitation on modifications.

What's new?

[topfile]

the govt gets a lean on the property for the amount they forgive or interest rate costs incurred?

Sounds better, but haven't seen a provision for it.