The legislators in Salem should have passed an anti-deficiency judgment bill during their one day special session.

Mr. Fleckenstein say the mortgage bubble has popped.

By and by, heartburn for the bankers
It is indeed the financial institutions that are most at risk in the real-estate market (which is not to say that consumers and speculators won't get hurt). The lenders will bear the brunt of the pain, because in many cases, they loaned the entire purchase prices of many homes. As I have said often, the housing bubble has been more a lending bubble. It will be the impairment of the financial institutions that will stop the flow of credit to the real-estate market. In turn, that will accelerate the collapse in house prices somewhere along the way.
[ MSN Money - The housing bubble has popped ]