On July 20th, Bloomberg reported that the Treasury Department is examining the feasibility of selling non-performing and underwater home mortgages from private label securitizations in an effort to help distressed homeowners avoid foreclosure. Because the loans would be sold at a steep discount, the third party purchasers would be more willing to renegotiate the mortgages. The sale of the loans by the securitization trust would be considered "qualified loss-mitigation activity." Foreclosure Avoidance.