intestingly the Mortgage granters thought they had a fix when they revised the bankruptcy laws to TRY and eliminate lien stripping from undercollateralized homestead properties. Under the old system the unsecured portion of the loan could be stripped out and placed in the non priority under securied creditors.
The secured portion of the load would continue.
Under the new rules, it is just easier to dump the whole property and buy something else by paying a few percentage points higher on the lower valued housing market.
The mortgage lobbyists who wrote that portion of the bankrupcy code got exactly what the wanted. (this is the part we chinese proverbs about getting what you want)
You’re right: you got the politicians in PC-mode trying to get people with a marginal ability to afford a mortgage and the propensity to spend on crap to get a mortgage; an American citizenry with no understanding of economics (95%); and the lobbyist working the tri-state big-six dem senators.