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Reclaiming your account: Password Reset/Forgot Password

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This is probably one of the oldest functionality that is part of any password based system and by now I was hoping that people will have figured out most of the ways of doing it. But while reading answers on stackoverflow on this topic, I was impressed by new ways being developed and implemented by developers in wild. While reading the discussion I felt that there is lack of a structure to look and study this functionality and this post is an attempt to define a structure. Before I go there, I wanted to capture my understanding of the password reset functionality. Why - Well if we are not noting down all the accounts we have created in life (either electronically or manually), it is possible that we are going to forget passwords for some accounts as we age. Even if you follow some techniques like having standard passwords across all your accounts, due to site limitations, change in word preferences, etc, you may not remember the applicable password for a site and so the lifesaver Why