Ok, so the government and the banks of a new thing that will reward people for their bad decisions. I understand that some people have been screwed by the banks and some people have had unfortunate events happen to them and loss of jobs etc...
I'm not sure that you do understand at all. A great deal of those people that took out these hideously rotten loans could afford their respective houses when they were boondoggled/brainwashed into believing the loans that the banks were offering were in fact the best loans available to them.
When the housing bubble burst and the economy collapsed, that's when these people couldn't afford their respective houses. The banks themselves in pursuit of the greatest profit at all cost cost the economy to collapse and they pulled down everyone with them, including those who held these (should be illegal) subprime mortgages.
In fact, many homeowners (of minority status) who could afford above and beyond the subprime mortagages were driven to these risky and dangerous loans by the management of these banks. Let's call it like it is. Institutional racism.
Then we have the robo-signing. Not sure how you lay this at the feet of the mortgage holders rather then the banks. Too many people were wrongfully caught in these (should be illegal) bear traps even when their mortgage was completely paid off in its entirety.