Lenders are currently foreclosing on homes and reselling them for nickles on the dollar. Yet these same lenders are unwilling to write-down the existing loans whereby the existing homeowners could remain in possession.
In the future, I propose that when a lender forecloses on a purchase money (non-recourse) deed of trust, the original homeowner should be given the "right of first refusal" to re-purchase the home at the same winning bid amount received at the foreclosure sale.
In this way, the original homeowner's loan would be restructured at the foreclosure sale amount, and the homeowner could (hopefully) afford to remain in their home.
Lenders don't need or want foreclosed properties on their books; honest, well-meaning homeowners want to remain in their homes.