“The money has been long gone and the taxpayer thoroughly screwed (without even a kiss...) no matter how deeply these homes are discounted or who buys them.”
But wouldn’t this put a foot in the door for an incentive
to force foreclosures on mortgages deemed at risk of
failure?
Certainly, but my point is that the damage was done when FHA, Fannie, Freddie or which ever other Federal agency underwrote the original mortgage, and/or refinance deal.
The people who are being foreclosed upon have been in constructive receipt of actual funds for a long time, and many have directly benefited from their own financial misconduct.