“Good luck trying to get a job to start that new life, when you have a black mark on your credit.”
You are $200,000 in debt. Who would be worried about a credit rating? Going to buy a new car? Doubt it, you buy used. Going to buy a new home? No, you will rent. No way is a tarnished credit rating worth $200,000.
The lender took a risk also, they gambled the value of the house would go up, and the house was their collateral. The risk didn’t workout, if the borrower walks away, they still have the house.
Good luck finding a halfway decent rental in a livable area with such a major black mark on your credit.