Research examining the impact of cramdown on agricultural loans found that banks usually got more than foreclosure value on reorganised loans, and that interest rates scarcely rose.

ECONOMIST: Economics focus

"The investors who own these loans recognize that foreclosure is costly, and that a workout plan or mortgage modification often brings them greater value than foreclosure, " he says.

FORBES: Wall Street Likes Bush Subprime Plan

If mortgages could be written down to a value above the likely foreclosure sale price, that would generate benefits for both creditor and borrower.

ECONOMIST: Economics focus

All forecasts are shown in the table below and are based on a model incorporating the previous data points of the Case-Shiller series and the September Zillow data on the Zillow Home Value Index and national foreclosure resales.

FORBES: By Dr. Stan Humphries, Zillow Chief Economist

Many senior lenders will now finance only 80% of the building's value instead of 90%, forcing more projects into foreclosure.

FORBES: Magazine Article

Manufactured homes also tend to lose value over time, and lenders can recover less money if there is a foreclosure.

WSJ: Prebuilt Loan Predicament

If your houses fall in value, you're left with nothing but some featured stops along the next Arizona foreclosure bus tour.

WSJ: Breaking the Home-Buying Habit -- WSJ House Talk