As devastating as this market has been, I, for one, am disinclined to support initiatives that alienate the rights of private business to conduct it's own affairs. In times of distress, historically, have been the times when the public is willing to hand over it's rights, protections and freedoms in exchange for the "illusion" of protection and safety. This is how one is made a slave and a subject to his/her government, in lieu of being a citizen with unalienable rights whose government (supposedly) is designed to serve the citizenry, not the other way around.
There are foreclosure laws and procedures that vary state by state, and the banks are already subject to following those laws and procedures, the current debaucle isn't about there being a lack of rules, but rather, policing the culprits who break the rules already in place. The new HAFA short sale procedures are a step in the right direction as now the vast majority of servicers are signatory to the contract that obligates them to pursue HAFA short sale alternatives - BUT and it's a big BUT, the investors of those loans are in no way obligated to agree. Nor should they be - as helpful as it would seem - for to force them to would undermine our free market capital system and inch us dangerously towards Socialism. My forefathers didn't fight and die so we could become a nation of Socialists. IMHO