In return for the reduction in payments, any homeowner who later sold the house for more than the value of the reduced mortgage would have to share the profit with the bank. (inc.com)
But the borrower can never owe more than the value of the home because the lender and mortgage insurance, private or governmental, would have to absorb the difference. (freefrombroke.com)
Across the country short sales are becoming more common, deals where an owner sells a home for less than the value of the mortgage WITH approval of the lender. (fhaloanpros.com)