It is no longer a SECURED debt.
The real issue is in the article. Does the bank get a free house via fraud and lying to the courts OR do the homeowners get a free house by using the same laws the banks have used to bully individuals.
Also remember the banks recieved tarp money for these loans.
I do not believe in either party receiving windfall profits.
(1) If the occupants did not pay off the amount of the mortgage they entered into, with the agreed upon interest, then they should not get the house. Period. It should be foreclosed and sold.
(2) If the bank received TARP money to cover the bad loan, then any proceeds from selling the foreclosed house should go to the federal treasury.