Sounds to me the best idea of all. This is going to scare the lenders straight and stop giving loans to people that can't afford them. In the mean time, I think the best option for the country to do is help out the folks that were given the loans. That may just show a glimmer of hope to the people of this great country. In addition, the fact that lenders are really at fault here is reason enough to make them find a way to get the moneys from the people lended to. If that means turning the existing foreclosing homes into a 60 year loan at half the monthly payment then so be it. It is a lot easier to bear a 600-700/ mth payment than a 1200-1300/ mth payment. Now, all the sudden there is less foreclosed homes and less bankruptcy. Voila, problem averted. What do ya think?