mortgagor

Which means you can take on an even bigger line-of-credit if a mortgagor agrees.

When the mortgagor failed to pay, those CDOs were finally downgraded and became worthless, losing banks hundreds of billions.

No mortgagor wants you to lose your house: they're in the business of lending money, not of managing empty houses.

Most mortgages (it depends) have a clause obligating the mortgagor to live in the home, regardless of the person from whom payments originate.

Are you trying to claim it's a bad deal for the mortgagor?

Shame my mortgagor doesn't accept fulfillment and meaningfulness as payment options.

In the UK, if they repossess and the sale doesn't cover the balance owed, the mortgagor (word of the day!) still owes them the rest.

Yes, because the mortgagor (banks / etc) don't own the property.

This is incorrect in most of the United States and in other countries, like England, where the mortgagee only has a lien; the mortgagor has legal title.

The mortgagor likely is the highest bidder.

But if we assume there is, then you are simply guaranteeing that no rentals will exist, because landlords pay higher taxes than a resident mortgagor, and they have overhead.

Don't know about the US; I know that in some US states, the mortgagor can walk away from the mortgage scot-free if they feel like it (nonrecourse debt, as it's known).