As long as the “homeowner” being foreclosed on isn’t an absolute, unrepentant derelict, the mortgage holders could just as well take back ownership and allow the ex-homeowner to remain as a renter until an orderly sale can be arranged—even if a couple of years off. And if not them, then new renters could be brought in at whatever the going rate.
As is, this has become the most unfair of all possible solutions.
I think we need to ask which, at this moment, is the greater social ill: allowing people to escape the consequences of bad financial decisions, or removing them from their homes?
The housing market is undergoing a readjustment. Overvalued homes will never again be worth as much as they were in, say, 2005. Obviously, people were not expecting that when they bought in. Also, unemployment is going up, and people weren’t expecting to lose the jobs that allowed them to pay those mortgages.
Beyond the crime bred by empty houses, there’s also the fact that home ownership makes people better citizens. Home owners are more law-abiding and more likely to be involved in their communities. So, there is some good in helping people ride out this readjustment.