Comment: So if the question is

if foreclosures are moral or immoral, or even if it should be criminalized, this is my take:

A mortgage is contract. Unless there was fraud involved then the person who signed the contract and the mortgage broker entered into a mutually benefical and legal arrangement. Virtually all standard mortgages use the home itself as collateral against default. Its pretty simple, a default results in loosing your house.

However when you have a corrupt banking system preying on people, backed up by the government and federal reserve system that intentionally bubbles and then crashes the entire housing industry, I believe that falls into the criminal fraud category.