There was a whole lot of foreclosure in the 2008 crisis. One of the big dilemmas back then was that people were "walking away" from their mortgages. ZOMG the horrah. Why would anyone be so brazen as shirking their moral responsibility to uphold their debts? Because, it was argued, they were simply parties to a financial transaction: in return for paying a monthly fee, they were allowed to live in the bank's house without the bank ruining their credit. When the cost of paying the bank for their house was substantially greater than the inconvenience of having their credit ruined, the rational consumer dropped the keys in the mailbox and paid cash for seven years.

There was a peculiar wrinkle up here in Washington, as any bank foreclosing on you can be compelled, upon official court motion, to "produce the note", ie bring the actual paper deed to court. Considering how many mortgages were bought and sold it was potentially worthwhile to stop paying your mortgage, let the bank foreclose on you, go to court and demand that they produce the note. If they did, you were foreclosed. If they didn't, the note was considered lost and you suddenly owned your house free and clear. Took the Republicans about nine months to close that little loophole but it was fun while it lasted.

I am all about consumers knowing their rights and their maneuvers. "moral hazard" is just a Republican's way of saying "they aren't doing what we tell them to do." But if you don't take Home Ec you don't so much as learn how to balance a checkbook so I'm not optimistic that the system is going to change anytime soon.