I don't see how a law that permitted this could be upheld, but this plays well with certain groups, after all they only have to fool them until Nov 4th.
And dumb but crafty Joe knows that as well as you do. As you say, pandering to the segment of American society that thinks 'Oh I'm one of Obama's favored ones, it will be great to just go to court and get my mortgage amount lowered.' That would fix everything, wouldn't it.
After Nov. 4 our entire framework of laws will probably change forever if Obmama wins. Remember: "From each according to his abilities to each according to his needs." I've seen proof that many people already believe that's actually from the U.S. Constitution!