My understanding is that: 1. yes, they can walk, 2. the bank takes the property, but can’t take anything else, and 3. a foreclosure will be on their credit report. When people are in this situation, they have the choice of either taking a hit to their credit score or taking a hit to their wallet (if they continue feeding the gator). If faced with these two bad options, I would choose to walk, but I have a feeling that most people would choose to stay, as long as they can make the payments.
