If you have a typical mortgage on a home, you own it. You then also have a promissory note with the bank, giving the house as security.
When the bank forecloses, it is taking the security promised because the underlying note was not paid.
There are all sorts of reasons, liability, tax, etc, that no bank wants own a home as long as the mortgage is being paid.
Laws? Obama? Surely you jest...?
Also see Kelo...
“...sources familiar with the administration’s thinking said on Tuesday...” ROFLMAO! I suppose they were channeling Joseph Stalin, Karl Marx, and Adolf Hitler!
Ain’t Obama’s “idea” at all....I suspect a bunch of bankers were burning up the wires to the White House....pleading ...anything but to have to eat the “true” value of real estate at the national level.