Good point. With the new bankruptcy laws, I would guess the Fed is way ahead of the curve on this one. People who used to be able to get out of those mortgages may find themselves unable to do so.
Does anyone out there know what the new bk legislation says about mortgage defaults?
"Does anyone out there know what the new bk legislation says about mortgage defaults?"
There's not a great deal of info that I've been able to find. As best I can tell, in the event of foreclosure, mortgagee will be on the hook for the difference between foreclosure sale price and the original note that was defaulted upon.