A mortgage holder's recourse in the event of default is the repossession of his collateral. You don't need protection from your creditors if you fully intend to allow them to exercise their legal rights to their collateral. You just give the bank the house and walk away. That is all they can get for the mortgage. If the price has fallen 20%, their problem, they eat the loss.
"You just give the bank the house and walk away. That is all they can get for the mortgage. If the price has fallen 20%, their problem, they eat the loss."
I'm sure I'll be corrected if wrong, but I am under the impression that, come October 17, mortgagors will be enabled to pursue mortgagees for the difference, between the price of the foreclosure sale and the balance of the note. No more walking away with just a trashed credit score... you're on the hook for the full amount.