Foreclosures and shortsales and bankruptcy - oh my!

Mortgages are a mess right now and the banks can't seem to figure out what to do.   There are some simple solutions.
For instance, the lenders can reset all primary residence loans (for anyone who requests it) at current rates.  For those who are delinquent, put the arrears on the back - like a piggy back loan with no repayment until property is sold.  Hopefully the people will then be able to stay in their homes for a number of years and by that time, the equity would have built up.  The lenders can be paid back in full at that time.  What if it sells short?  Well, most likely that would've happened anyway. 
So what do the lenders have to lose?  Less cost for them - except for paperwork to reset the loans.  They can reduce their mammoth loss mitigation departments.  It would stabilize the housing market and any foreclosures/short sales would be spread over a longer time frame.  More likelihood that people would be able to  stay in their homes keeping the values in their neighborhoods stable.

Are you aware that during the Bush years, they changed the bankruptcy rules so that people filing bankruptcy can have their investment properties protected and loans reset - the trustee has to do that.  But people who only have their primary residence do not get that benefit automatically.

If you are in a situation where you cannot make your mortgage payments, DO NOT WAIT until the last minute.  Find a reputable Realtor and ask for advice.  Do not go with scams that take your money with guarantees they will save your homes.   If nothing else, call me and ask for direction.  I have lots of resources.  Don't exhaust your savings...and find yourself up against the wall.

And, if you have already done that, call me and let me see what I can do to help.