Yes and yes. I told her to just drag it out as long as possible and enjoy the windfall. Sure, eventually they’ll kick her out, and then she can buy something else or even rent...
Its a bad situation but the people who really caused this are never going to suffer. I’m referring to politicians and the big bankers. They all made millions from these deals.
Tell her to apply for a HAMP modification. Drop her rate to 2%, recapitalize missed payments (banks love that!), and she'll keep her house.
If Sam Clemens were still alive, he'd say there are 3 kinds of lies: lies, damn lies, and HAMP modifications.