Banksters hate this. Municipalities seize foreclosed property under eminent domain and renegotiate the mortgages so owners can still live in them. This protects entire areas from becoming ghost towns or high crime areas.
Richmond CA is already doing this. Irvington NJ may follow, and maybe Newark too.
Traditionally, municipalities exercise eminent domain to condemn a blighted property and transform it for the benefit of the general public. In this case, Ofer said towns would purchase the mortgage at fair market value and sell to a third party under more favorable terms for the homeowner.