In the 90's you could mail your keys back. I think it is a bit more difficult to do that now. Didn't the new bankruptcy law change that?
Yeah, it did. People can no longer simply walk away from their debt or file a deed in lieu of foreclosure. They will pay and pay for years on the loan. Even after the home has been foreclosed. Even if they file for bankruptcy they will pay. If there are losses, even BIG losses, the purchaser is going to pay, and pay, and pay. For years and years and years.
Blame Congress. It's all their fault.
What did the banks know about The Housing Bubble? When did they know it? Did they know about it when they pushed Congress to amend the Bankruptcy Act?