When you offered 105% jumbo mortgages to people making $20 an hour or less, this was inevitable.
The banks aren't pursuing this avenue because they are eating $100k on a house. They are doing so because they are trying to make strategic default a bad idea. Going to court to get a settlement against someone who legitimately declared bankruptcy probably isn't worth it long term. Going after someone who has assets and just walked away form their mortgage on the other hand may yield revenue to offset the bank's loss. I think the real issue is going to be how many walked away at the first sign of trouble. Most probably aren't exactly sporting their pre-recession income anymore.
We think that in a fair world someone other than the home buyer should pay the debt.
The people who bought the banks Mortgage Backed Securities need to do the same. They need to go back to the banks and asked for their money back. And with all the fraud the banks committed and are still committing they need to put the bankers in jail.
Big_T
Sad