Great questions/comments. A SCOTUS case recently came down that said BK judges don’t have the Constitutional authority that other Federal judges have so their decisions are not valid or binding. This hiccup will confound Congress, members of which are not sure where to find their copy of the Constitution for reference since they don’t make decisions based on it. So I don’t think Congress will act until citizens are in the streets with pitchforks and torches (this summer??).
I’ve seen a number of RE scams whereby people invest trust deeds for houses which are rehabbed, sec. 8, etc. I know of one where the proponents neglected to file the trust deeds so all the money invested (many millions) was unsecured (ooops!).
Our Cal. Gov. Crusty the Clown recently amended the law to give relief to those who short sale houses to get around the recourse effect of Non-PMSI 2d mortgages. Problem is, he has no control over the IRS, so even if you are the camel who can fit through the eye of the needle, you still may end up with a substantial federal tax liability.
My crystal ball is cloudy other than no good will come from the Govt. any time soon. Everyone proceeds at their own risk and many will end up on my doorstep.