Geezus. No wonder this country is screwed.It is not that simple.
Many of those people are underwater in their mortgage.
Many of these folks were stupid enough to take out 2nd mortgages to put in a pool, or build a super deck or turn the basement into a very expensive home theater.
They may owe $375k but the value is $280k...where the heck are these people going to get $10,000's to pay the difference? Many of them are only paying interest payments.
It's called bankruptcy. You can't pay your debts, you bankrupt. In some states even that isn't necessary. Just send the keys to the lender (jingle mail) and you're done. Most people end up renting as nice houses for less money than they were paying in mortgage payments.
Another example of a wasteful governmental program.
Holy shit your "solution" is bankruptcy. What kind of fake personal responsibility conservative are you?
Do you think taking government handouts demonstrates personal responsibility? What kind of moron are you?