So what percentage of the people in India own homes?
If the US government started arbitrarily seizing mortgages or forced them to be paid off at pennies to the dollar, no company would ever again make a mortgage loan in the US except at huge interest rates.
There was a lot of greed on every side during the real estate bubble. People signed on to mortgages their income could never support, in the vain hope that real estate would continue to increase at ridiculous rates. They were just as overcome by greed as the big Wall Street banks. Rather than enforcing existing regulations to stop the madness, government at all levels instead did everything it could to make these outlandish loans possible.
As for India, the central government struggles under massive debt as it subsidizes fuel and other commodities. It's a game that can't be won in the long run, and its people are barely improving their lot despite these massive subsidies.
