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🐘🐘 Humpleupagusto 🐘🐘 | 1 years ago (raw) | root | parent | reply | flag +1 
 People will just stop paying as the economy collapses. In the US, a borrower can cram down the amount owed to current value in Chapter 13 bankruptcy. The banks are fucked.
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323d4d01 | 1 years ago (raw) | root | parent | reply | flag +1 
 @🐘🐘 Humpleupagusto 🐘🐘 @dabe0ad5 if you declare bankruptcy they will repossess the property.
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🐘🐘 Humpleupagusto 🐘🐘 | 1 years ago (raw) | root | parent | reply | flag 
 No. Chapter 13 is a repayment plan. The debtor remains in possession. Collection activity is prohibited except through the bk court, so they can't foreclose. The debtor still has to perform the plan and make payments, but the debt owed on an underwater property is reduced to fair market value with the difference typically discharge as unsecured debt either completely or for pennies on the dollar. 

Chapter 7 is a different story. The lender will often move to lift the stay to the extent necessary to exercise their security rights, i.e. foreclose the property.