That is an interesting post, Fred. As anecdotal evidence, several years ago I filed a lawsuit to foreclose a second lien on a nice oceanfront vacation property that had been fraudulently conveyed by the borrower to a family member. For over two years, pitched litigation made little headway. The case eventually settled when I gave the borrower the option of walking away by selling the property himself and giving my client the proceeds. Economically it made no difference, as compared to a foreclosure auction, but the borrower walked away with a sense of autonomy, which he evidently valued to a high degree.

Yes, this makes sense to me. Moving out of one's home is disruptive, even when it's voluntary and planned. When it happens under the hammer--where the terms and timing are out of the owner's control--the psychic toll must be severe. Thanks for the story.