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Three Problems with the Fannie / Freddie Mortgage Modifications

If a deal must be made, maybe we should first open up the same offer to those that might better qualify and weren't so hasty to buy into a housing market that was rising at an unsustainable rate. If nobody seizes on the renegotiated price, allow the original occupants to retain the home with the renegotiated mortgage.
This would serve us better in a number of ways. First, as a taxpayer I wouldn't be as upset at someone who played by the rules to have first crack. Second, it would eliminate moral hazard. Third, we may get someone who better qualifies for the loan and therefore we wouldn't be in jeopardy of this home later falling into foreclosure anyway.