If we limit the number of foreclosures and evictions that our government will perform annually, then lenders must be more careful about which mortgages they foreclose and renegotiate with the remainder. Each lender could be limited to a percent of loans made. The approach is fair to all. It keeps homes maximally occupied and helps the lenders to avoid taking losses. At the same time it does retain for lenders the threat of foreclosure as a means to encourage loan repayment. Also, it save the government money, rather than creating a new expense.
In addition, forfeit to the local government of foreclosed properties still unoccupied 1 year after foreclosure will encourage lenders to their foreclosure rates well to the current market. It pushes lenders to salvage mortgages in relation to each local market. It also provides governments access to unused properties to lease as affordable housing.
Does it work, or did I miss something?
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