Why are we paying the lenders directly rather than redeeming the defaulted mortgages?

We give it to the lenders so they have an easier time claiming it on the executives pay "compensation". Also to make it easier to "loose" a few hundred million. Actually to be fair the home owners should be able to renegotiate their mortgages but not get out entirely. Don't worry too much, after all the screw ups this administration's had letting businesss run things I'm sure congress wouldn't dare let them just have the money outright. There'll be some mighty lons attached.