The City of San Diego is suing Bank of America to force them to stop foreclosures. They'll soon sue other banks. This is monumentally stupid, in my opinion. If you're in a house and having trouble, you don't care about your credit rating anymore, and you know that they can't foreclose your house, you would be strongly tempted not to pay on your mortgage. What could they do to you?
If San Diego succeeds in this, other cities would probably follow. And what bank will give anyone a mortgage if they know that they can't reposess the house if you default?