At a logistics level:
There is almost no legal way to remarket a property less than 180 days from first non-payment.
That is not true in shorts.
That alone is a tremendous public savings when multiplied over hundreds of thousands of distress sales.
That is true even if the eviction is “timely”.
So you are wrong there.
At a moral level:
The morality of this suggestion is not relevant.
But let’s judge just for fun.
No, the borrowers do not “deserve” to have their debts absolved.
And anyway, unpaid debts are settled (with derogatories), and not absolved (with no consequence).
However, neither do the banks “deserve” to be made whole through collections (or even have the right to try).
No real moral imperative either.
In sum, there is no moral or logistical benefit to the status quo. There is a large potential savings in changing the existing arrangement.
