On 9/19/05, Shane Hathaway <[EMAIL PROTECTED]> wrote:
> More likely, bankrupt home owner A (who owes $100k) could sell the home
> for $250k to a third party, paying off the loan and still having $150k
> to move into a smaller home with zero debt.  Bankrupt home owner B would
> have no way to buy a new house.


Assuming someone is willing to buy the house.  If we were in a
depression, moving a 250k is not going to be easy.  The bank can hold
it until better times arrive and then sell.
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