Here's the squatting story Bill from OP was talking about

http://rawstory.com/news/2008/Rep_Foreclosed_owners_should_squat_in_0130.html
"During the lending boom, most mortgages were flipped and sold to another lender or servicer or sliced up and sold to investors as securitized packages on Wall Street," explains the Consumer Warning Network. "In the rush to turn these over as fast as possible to make the most money, many of the new lenders did not get the proper paperwork to show they own the note and mortgage. This is the key to the produce the note strategy."

And another stratergy...

Congress is currently considering the size and scope of a second stimulus plan to help bailout the American economy. The first stimulus plan essentially focused on bailing out Wall Street and the banks. It is vital that the second stimulus plan provide direct economic relief to Americans. There are many ways to provide relief. The Mortgage Deferred Payment Plan is the initiative we are advocating.
How will the Mortgage Deferred Payment Plan work?
The plan will allow qualified homeowners who have Fannie Mae or Freddie Mac backed mortgages to apply for a mortgage payment “deferment” for a specified period of time. We are proposing 6 months to 3 years...

At the end of the “deferment” period we are proposing that the homeowner have 15 years to repay the “deferment” interest free.