Not a problem.
Simply import millions of Chinese to sop up the foreclosed homes at a fair price, reducing the supply and increasing the average price to where no one is underwater.
It will rebalance our trade deficit with China and allow the rest of us to get out from under our over-inflated mortgages and move elsewhere...
This is already underway in certain regions. Right now its mostly Chinese who have made money there (communists who ran “state-owned enterprises,”etc.). The one good thing is that (if we are allowed to repeat the common generalization ) the Chinese “make pretty good neighbors” and when they have kids (ehich they are allowed to do here) they insist that the public schools get better). This is propping up realty prices which otherwise would drop like bricks, as is the sale of large portfolios of houses (assembled thru our governmental lending-guarantee systems and otherwise) to largely-overseas investment interests (including we hear the communist Chinese banks). Its not all China, though. Its also from other countries.