[Hans]

It will give the big banks a chance to unload garbage paper.

[TxAg1981]

It will give the big banks a chance to unload garbage paper.
I think you are correct. There are so many underwater properties on the banks' books that they cannot foreclose.
If they did, the bank would be insolvent. So, the Fed has to inflate the currency, artificially causing the price of the house (not the value) to rise.
Once the price is above the mortgage amount, the banks flush them off their books.

I believe that the banks see that there is no good way out of this, so they are getting out the best way they can and let the general public be damned.