It was Ronald Reagan who said the big sucking sound with governments  taking all your money You get totally raped with all the fees, lawsuits, etc in a forecloser. . The lenders only want their money back and you really can't blame them.  Unfortunately lots of people will be affected by this.  I think the biggest problem is the prices went to insane levels over the last 5 years and nobody has any money now and many are going to lose their homes because they can no longer pay the increased fees - taxes, insurance, etc.