What happen's to home mortgages during a depression ? who collects, who evicts ?

I'm guessing the government takes over, but do they make millions and millions of people homeless when they call their loans and there is no way to repay ? I'm just imagining empty homes and people living in the streets, would it be less dramatic then that?


What happen's to home mortgages during a depression ? who collects, who evicts ?
In my opinion it won't be that dramatic.





The government doesn't usually take over mortgages. This current crisis is just that, a huge, unprecedented crisis and the government's bailout plan includes buying up bad loans.





When homeowners don't pay their mortgages, eventually the lender will foreclose on and evict them, if it comes to that. It does not happen fast. The homeowners get months to try to catch up on their payments and/or work something out with the lenders. The banks don't *want* to foreclose and then have property on their hands that they have to sell at a loss.





If the homeowners can't work something out they will have to move, but hopefully not to the streets! I guess this could happen but I think the percentage of people who end up homeless after a foreclosure is extremely low. More likely they find a place to rent or maybe move in with relatives.





Whoever ends up holding the loan tries to collect, but probably will end up writing off at least part of the debt.What happen's to home mortgages during a depression ? who collects, who evicts ?
The government is taking over the banks, the sheriff does the evicting.





It will not be ';millions of people';, and those ';millions of people'; dafaulted on loans, they lost their homes by refusing to repay the money they already spent. It is not something that happens to them, they made the choice themselves.