This is the kind of stuff that pisses everybody off. The hoi polloi get raked over the coals for college loans while the haut monde blithely skip right past $40 million in debt.
Similar to how you can restructure your medical debt, which doesn’t show up on credit reports anymore, while buying a new car on financing. Separate sets of books.
make new entity, sell new bonds with a new proposal on how new people will potentially make money.
Mortgages aren’t only one among many phyla of dollar-denominated debt, they‘re not even the biggest [1][2]. And fiscal spending can create new money without debt. Debt is the monetary channel’s mechanism.
[1] https://www.statista.com/statistics/274636/combined-sum-of-a...
[2] https://en.m.wikipedia.org/wiki/National_debt_of_the_United_...