Blackeyebart

Obama's Foreclosure Plan Helps Banks More than Stimulus

If I understand this correctly, it would be more beneficial for a home-owner to do the bankruptcy step first rather than try and sell the property all by himself.

If he acts alone, he ends up carrying the loss alone. If he takes the bank with him to court then the bank gets to share in the shortfall.

Once this step is taken there is no obvious reason for the home-owner to sell. He has to live somewhere. If this process were widespread it may influence the number of houses for sale, which would be an additional benefit all could share.