Here's what happens:
-Individual gets hit hard and can't make payments to the bank
-Bank forecloses on house (it happens) and kicks out individual from their house
-Bank doesn't tell individual that they changed their minds. There was no foreclosure.
-Debts continue to stack up, unbeknown to the individual, who still believes he no longer owns the house.
-Bank Sells the debts to a debt collector for some money, the debt collectors go and collect a MASSIVE amount of debt and even the state gets involved at this point, because the house has been sitting there unattended.
- Even though the individual isn't allowed to live in his own house anymore, he still has to fix it back up, go back every week to mow the lawn and pay massive amounts of debts that they can't possibly hope to pay off BECAUSE NONE OF THE INDIVIDUALS ARE ALLOWED TO SELL THEIR HOUSE. THE BANK DOESN'T WANT THE MONEY FROM THE SALE. Why? Because that's not profitable enough. And even if a sale goes through, and the individual sells with a profit, then that profit would STILL go to the bank.
This is absolutely disgusting.