Is this an argument against what I have described (which is just a basic rule of secured lending)? What you say is true, but that doesn't mean it's not the law.

Is this an argument against what I have described (which is just a basic rule of secured lending)? What you say is true, but that doesn't mean it's not the law. As I understand it there is generally some basic principle that you need to make some effort to obtain a fair price (it will depend on the jurisdiction). But yeah, if you walk away from your loans you don't generally expect your lender to bend over backwards to maximise value for you. Fire sales do happen.