John D. Geanakoplos a professor of economics at Yale and a partner in a hedge fund that trades in mortgage securities, offers a another alternative to foreclosure. In his Op-Ed piece Mortage Justice Is Blind for today's New York Times, he discusses what used to be the parties to a mortgage and how the ability to rework a mortgage was more approachable. However, with securitization of mortgages, the dynamics of the relationship has changed and so has the ability to rework mortgage loans. The article highlights the challenges of reworking loans in the world of "master servicers' and offers the solution of community-based, government-appointed trustees, much the same as trustees in a bankruptcy proceeding. The thought is that there would be a better opportunity to keep people in their homes and some revenue flowing to lenders as affordable payments, thereby helping to stimulate the local economies.

There is also the proposal of the Chairwoman of the FDIC, what say you on these suggestions?