This is the follow up point I wanted to make, but I don’t know a ton about it. Perhaps, this is what makes it practically too difficult for the feds to go after borrowers. I have heard the judicial foreclosure process is pretty difficult/a pain. Additionally, the borrower would have a right of redemption for a year, meaning he could come in and pay back what he owed on the loan and take back the house. As result, the property would be tied up/unsaleable for that entire period, the full year. This is what may make this less of an issue.

I still have the federal preemption issue in the back of my head. Do the feds have a rule that would preempt the one-action rule? Not sure. Maybe it is unlikely.