An Idiot in Miami

Dissing and Praising the Recent Housing Bill

Can't they (banks) do that now? Why would they get a higher price? Is it because the current occupant/borrower is willing to pay a premium to stay in the house as opposed to an outside buyer who will only pay true market price?

I would understand the "bailout" (therefore the incentive) if the banks would get subsidized on the writedown amount by the govt (read Fannie or Fred). Perhaps I have cloudy vision but if I were a bank the only motivating factor for me would be if someone (anyone?) would cover my losses.