The main problem for homeowners who end up in mediation or settlement discussions is that they are perceiving their transaction as a loan, while the other side is perceiving the transaction as part of a securitization scheme. 

The mistake made by both homeowners and lawyers who are not knowledgeable about securitization is that they undervalue the potential settlement because their reference point is the value of the loan. 

The opposing side is looking at the situation as to the value of the threat to the investment bank's scheme of securitization.