LISTEN UP PEOPLE WHO "LET" THEIR HOUSES GO INTO FORECLOSURE. HERE IS SOMETHING IMPORTANT FOR YOU TO CONSIDER>
If is it is any consolation to you, a lot of people who invested in homes took money out after they purchased or refinanced. When you purchase a home the original loan that you use, in our state, is a non-recourse loan. A non-recourse loan means that once the bank forecloses, they have no recourse to the debtor for the rest of the loan balance due after the bank sells the property, also called the deficiency. However, if your friends refinanced their loans or took money out in a second note, any loans that were not for the actual, original purchase of the home are recourse loans and your friend may find that rather than owing money on a house that is "upside down" they now owe money and have nothing, not even the upside down home to offset their debt. And, they may think that because they have not been contacted to pay a deficiency they are OK but I believe the timeframe that the bank can seek the deficiency is three years and banks, who are so behind the curve to prepare for all of these foreclosure are preparing to go after their losses. (Kinda funny because our tax dollars bail them out of their losses and then when they recover some of them, they get to keep that money too.....but that is a whole topic for a blog and probably not your answer)
So, there is a chance that these "investors" will be a little shocked by their unsavory choices.
There are homeowner who are owner occupants and are insolvent, they probably have nothing to loose and could file bankruptcy. But these investors with rental properties probably have primary residences and other assets that will not make it as easy for them to discharge the debt even through bankruptcy.
This is why it is important to negotiate terms for short sale, loan modifications and even deeds in lieu of foreclosure. If you just stick your head in the sand and walk away from the property, you dont have a lot of negotiation once they already have the property back. This is a serious financial situation for people and it requires a serious commitment to follow it through to the best possible resolution.