Oh, I don’t think they are “typical” at all; they are a worst-case scenario of what happens when poor planning meets outright naivety. Here in NJ banks were taking back the houses until a glut had them working out arrangements with the owners in default (not to keep the homes, but to at least stay in them until the bank found a buyer).
I’ve seen mortgage horror stories, but can’t relate to anything in the $600k range; people buying that kind of home wouldn’t give me the time of day.
Or maybe even deliberate gaming.