See that's a question I have not found an answer to. Here's why. I looked into this. Most people that got funny morts and can't afford their place, yet can't sell it, do one of two things. Get a new house with new fixed rate either financed in someone elses name or found a bank that was willing to give them an additional mort. Here's the thing. If you are late paying on your current mort...in today's economy...what bank would give you a 2nd loan of such amts.? I dont see that happening, thus, my theory they are getting homes in other names or renting. Then they take the credit hit and just say F it. People that walk away realize there is no way to stay afloat or understand any arrangements they make with the bank will actually not help them at all, so they get a foreclosure on their credit.