Anyone recall my post pertaining to: how foreclosures are affecting tenants? 

Years ago, I oversaw a Loan Funding Department, at that time there was a document titled Assignment of Rents  – this was included in all sets of non owner occupied loan docs.  I am not an attorney, but I wonder what the harm is of:
 
1) The bank using this form or a similar form with all loan documents (owner and non owner occupied loans)

2) If it is taking 4-7 months to take these properties back in foreclosure, seems like it might be worthwhile to try to collect the rent if they do have the assignment of rents form complete; the lender could do a drive by of the property and leave a note "This home is in serious default and we need to talk". At the very least the tenant would have some "notice" that they would likely be receiving an eviction notice from the bank, when and if the bank took the property back in foreclosures AND perhaps the tenant would pay the bank the rent in lieu of the (defaulted) homeowner. Seems like the banks could use this money.

3) I wonder if it would require legislation to start sending notices to the house – instead of to the owner’s mailing address (in the event the home is tenant occupied) these tenants don’t deserve this nightmare.  The notices could be addressed to "occupant".  This is so callous that there is no legislation in place to ease the (innocent) tenant's suffering.  The foreclosure should not come as a surprise to a tenant, and it seems that this can be easily remedied.

Read this family's saga:
LAGUNA HILLS, California (CNN) -- Charles Nelson has paid about $30,000 in rent since moving into a spacious four-bedroom home in August. He was stunned when a real estate agent knocked on his door recently and said the home was in foreclosure.

Now on to the real estate fraud game: 

A big unanswered question is whether the Wall Street investment banks that were packaging these mortgages knew they were selling garbage loans to investors. A wave of litigation is starting against these firms. One former worker whose job was to catch bad loans says her supervisors covered them up. 
Read remainder here:

This in from Mr. Mortgage:
A phenomenon not yet discussed in any great degree is the forced buybacks of defaulted loans by the original lender or investor due to early payment defaults, fraud and lender ‘negligence’…..If any sign of fraud is found on a defaulted loan, in most cases the originating or selling lender/investor is liable……Recent research reports have found that on limited documentation loans, income was inaccurate to the high-side in 90% of the cases studied…….

Limited documentation (as in no income verification) and they are shocked that buyer’s “misstated” their income  - I wonder what the purpose of the loan was… if it was not for lying??!!