[perfect_rovian_storm]

They signed papers that they would make payments and repay the loan in full.
...OR give the house back. They gave the house back. Now the bank can figure out just what the hell to do with it. The 'homeowner' made a dumb decision 'buying' the house and the lender made a bad decision giving them the money. So what?

[GOP_Lady]

They signed papers that they would repay the amount of the loan in FULL. Again, you don’t purchase things that you cannot truly afford. Hubby and I bought our house on the condition we had ONE income, not two like we have always had. We wanted to sleep at night. Even with our two incomes, we would have NEVER purchased a home for $400,000.