Reply #81: That was exactly the deal.

[Robb]

Default is default. Why is never discussed. You are reading much into a contract that is not there.

If banks don't want to be owning houses, they should not loan money based upon the premise they will take the house if the money is not paid, because it *will* happen, because that is the deal they are striking.

They will try to only loan to people who won't do that, it's true. But their model for identifying those people failed, not their contract, nor the people they loaned to.