People have the freedom of speech through voting or by not voting.
Plus do we really want to fine people for not voting?
If the primary mortgage holder owed 50 grand, then you could buy the second mortgage and payoff the first.
Since the primary note is more than the house is worth the secondary note is essentially worthless. Real estate auctions are no place for amateurs.
There are many derivatives that are used to reduce risk and help businesses compete. There has to be some middle ground.