“In most cases I do not feel this way. I am dead set against the taxpayers paying one thin dime in forgiving mortgages or paying for them and such. “
Trouble is the taxpayer has already paid and will continue to pay regardless. In many cases the foreclosed home is only selling for 60-75% of the market price. Which keeps prices down. Here in Florida the market price is probably 60% of the original value of these loans.
So an original loan of $350,000 equals a current value of $230,000. If the home is in foreclosure they’ll probably only get $175,000 from a new buyer, if they can find one. In the mean time taxes and maintenance have to be paid. Add in legal costs and they might not net anything on the home except interest on the new loan.
The ‘market price’ is what the house will sell for today, not inflated bubble prices way back when.