Yep. It sure was in mine. And my credit would tank if I defaulted.
You think this guy’s won’t?
Yep, it will take a hit.
And if you’re in a situation where you default on your credit cards or student loans, you suffer a worse hit to your credit than handing in the keys on a house while you’re current on payments, ie, ‘ruthless default’ on a house.
The banks *asked* for this outcome when they elevated other forms of debt to be more punitive in default (or impossible to default on) in 2005. They must have thought this was the preferable outcome, because they practically wrote the “bankruptcy reform” bill.