Two small notes: 1) It should not take a lawsuit for this to happen. 2) Other lenders should follow suit.

Why do lenders want to keep driving foreclosures and taking homes? Isn’t that just going to keep driving the economy down? Why not agree to take less money now, so the homeowners can stay in the home and then recover the money later? It is much better to make less money than to end up with foreclosures and lose money. I understand that many of them are acting desperately because they need cash NOW, but all that does is destroy the housing market, and in turn, the economy, which leads to a biger spiral, etc.

What do you think? I think that this is the first step and makes more sense for an economic recovery. I hope to report that other lenders will voluntarily follow suit, but only time will tell.