$400,000 for 2 units that could only bring in $1150 a month in rent says it all, the place couldn't support itself renting out both units so was grossly overpriced.

$50,000 a year to pay their part of the mortgage left them with $550 a week before payroll taxes. Once their interest rate went up they had nothing to live on after paying the mortgage with their take home pay.

The place should be sold if they default and they should have to make the bank whole on any red ink the bank suffers by not being able to auction it off to clear the loan THEY took out on the place.

the only people that should be let off the hook in bankruptcy are people who are too ill to work or lost a good job they can't replace or a mate died. Just being ignorant shouldn't be enough to worm their way out of debt THEY made.