[tmorton]

In pure financial terms, you're right. However, "people losing their homes" is perfectly accurate for some people. A home isn't just a house or an "out-of-the-money home purchase option", it's where you've put down roots and built up memories.

Some people made bad gambles, and are losing their "options." Others made bad decisions or were unlucky, and are losing their homes. Even if they're partially to blame, it's still a terrible situation.