Not true at all.
Debts are extinguished all the time in the various bankrupts.
Also, you can ask GM bondholders about the sanctity of obligations.
In America, property rights are ever more clouded, and diminished every year. Nice trend line. Courts are active participants in this clown circus. So, it’s everyone for himself, as you can.
You're wrong. The court is saying the bifurcation of the note and mortgage rendered the note unsecured - like a jumbo (or should we say, jumbled) personal loan. The house doesn't secure the note any longer.
Whoever is entitled to payment (the one who legally holds the note) may sue the homeowner (if they can ever determine who that is) to satisfy the jumbo personal loan; their home is debt free, the homeowner may not be.
There is no judge nor court that can "fix" this problem to the bank's best interest. They skewered themselves over their own invented sword called "REMICS". Arrange the letters a little differently and you get "CRIMES". Ironic, isn't it?