Everyone will win with this and everyone will lose.

The buyers will be stuck with mortgage balances greater than the house is worth (they lose!), but their mortgage will be much lower than it was before (they win!). The investors will take a hit on their loans (they lose!), but they’ll take less of a hit than if the houses were foreclosed on (they win!). The taxpayers will end up funding a big chunk of this (they lose!), but such funding (the “socializing of loss” concept) will help keep us out of a depression (they win!).

Everyone will be unhappy. Yup, sounds like the essence of a perfect compromise to me.