Everyone keeps saying that the housing market has to turn around and someone has to start buying.  It's the same with the auto industry.

Ok.  Tell me who's lending then.  Credit Card companies are lowering limits, which lower credit scores.  Banks are raising FICO Score qualification limits and limiting those who can actually get approved for a loan to astronomical heights.  How do you expect us to get over that bar? 

I saw a house for $70k, asked a bank about a loan and was told "Your score is good.  You have no debt,  but sorry, we don't lend that low.  We have to originate a loan where we actually make money.  Go to the bank were your savings account is at and ask for a personal loan". 

So, I got this great idea.  Why don't you guys just renegotiate those bad loans you wrote?  Every house saved makes a happy Christmas shopper. 

If not, expect more foreclosures and no one picking them up because you won't give a little.  Banks can't have everything their way.