The governments new HAFA program is supposed to help all U.S. homeowners that are "underwater" with their current mortgage, restructure their loan so they may keep their house. Http://www.realtor.org/government_affairs/short_sales_hafa
The problem is that the guidelines allow for real estate agents to perform BPO's to determine what the current market value of the house is, resulting in a new restructured mortgage. This is like asking the "fox to guard the hen house". What were these people thinking! My suspicion is that money and politics allowed this obvious inadequacy to get by.
The current guidelines also allow for an appraisal performed by a licensed real estate appraiser to determine the value of a property for this program. An appraiser is an unbiased third party with no affiliation with the negotiation process "whatsoever"! One who is experienced in not only pulling comparables but analyzing a market that is in turmoil!
A fifth grader could have recognized this flaw. I smell a rat in the system before it even gets off the ground. I hope the rest of the "Financial Reform" process isn't as flawed.