FDIC selling some failed bank loans for 1/400 th of value.

FDIC has lot of assets from the foreclosed banking institutions.These assets are sold to private investors at a discount to get nonperforming loans off the books and sell the other portfolios as performing loans to other institutions.That is fine and good .FDIC should implement a policy to write off debts instead of selling them 1/400 of its original value as it has done in some cases(Per news report NYT EricLipton4/16/09 that 6 million dollars non performing loans were sold for 15000 dollars). An effort must be made to renegotiate the loans to 10 PERCENT OF THE LOAN value with the original borrowers.This would take lot of heart ache out of the system and could bring 40 times the return to the treasury.By saving some of these businesses we save people from becoming destitute and keep the employment flowing.
Writing off some of the loans serves the national interest as it keeps the properties from being abandoned and save the neighborhood.By reducing the number of properties for sale from distressed market we stabilise the markets and help the economy .With prices very low new construction has stopped as cost of materials and labor is much higher than the market.
Let us think how to protect our businesses.Smaller businesses with less than $ 500,000 valuation need a lot of help.Remember CRISIS IS TERRIBLE THING TO WASTE.Let us become a country which really encourages entrepreneurship.