Why meddling in foreclosure prevention is stupid.

[The Buddha]

How will it make the problem worse.
OK ~3% are in default. If they get in and modify the mortgages en-masse, guess what, there is a good 15% out there that is bordering on 0 equity, but they are all hoping and praying and thankfully ... paying. If they modify the 3% that are under, it will promptly send much of the 15% into negative territory and worse, it will let them want to default and then ask for a hand out.
The only way to keep it from defaulting and snow balling - increase penalties for defaulting, unless you prove fraud. And not fraud committed by you. Prove fraud, and you can walk. Else defaulting will go on your record, you can go to jail you could have wages garnished anything is possible.
Watch as they think they can pull the little hair on the tail of the tiger without the tiger waking up and trying to bite their head off.
Essentially the bail outs and the BS isn't working only because its in the wrong direction. The solution is to enfore and expand and really make the laws more strict. Nothing else will stop it. Or even slow it down. Plenty of fraud out there, so no worries it will be still needing bailing out.
Cool.
Buddha.