Perhaps the City of Boston could follow the footsteps outlined in Matt Taibbi's Rolling Stone article. The city would take underwater or to-be-foreclosed homes by eminent domain, paying the loan company the current market value of the home, while arranging a writedown of the previous mortgage, so that the residents can re-finance with the city, despite the banks, at the current, real value of the home. Then the city would sell the new mortgage on the mortgage market, I guess.
I recommend Matt Taibbi's article, at:
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