OK, after more reading (Thanks Andrew Leonard!), I've come to the conclusion that the $700 should be given to the JUSTICE DEPARTMENT for the explicit purpose of placing leins on people's houses during bankruptcy.  

That is, give judges that are deciding the fates of real individuals the ability to purchase a percentage of their homes.    They don't need to repay (really 'buy back') that portion of their home until they decide to sell it.   When they do sell, the government takes the same percentage of the home they 'purchased' before. 

I'm still convinced that the best thing for the economy (Wall Street and Main Street) is to keep people in their homes.   If we can do this, everyone will win!