Don’t forget the cries from the professional victims groups to extend credit to more and more people (who weren’t credit worthy). Then the gov’t comes back and blames the lenders, or the victims groups cry again that the terms are too high.
And let’s not forget, also, that the friendly IRS sees any debt that you have written off under foreclosure as “INCOME” on which you have to pay taxes.
This is why it is so astounding. Non-homestead collateral can be lien stripped and the renegotiated.
Part of the reason the IRS “hits” the bankrupt forclosed is that the lender writes OFF the loss and teh IRS is trying to “recapture” the taxes from another source.