1) Borrowers stay in the home, hence no foreclosure, and no increased inventory flooding the market.

So this amounts to a kick in the crotch for bubble sitters who have been waiting patiently for markets such as SD to return to affordable levels? And as far as the potential for a new fraud that was identified- this illustrates why I have contempt for the real estate/appraisal/loan infrastructre, excluding of course the Pigg posters here who seem honest, in fact I may contact SD Realtor soon. But the fact that you guys see a likelihood of a new type of fraud is a terrrible indictment of the industry and an unfortunate argument for regulation, and ultimately why I want to buy a house after additional price correction then be done with the industry, hopefully for a lifetime.