I haven't heard about the settlement yet, but as to people staying in their homes...won't they still be required to pay the mortgages on those homes? The banks just won't let you out of the payment will they?
I can't imagine that $30,000 is enough to pay off most people's mortgages. I also don't think anyone is going to try to move into Hickory Woods, so they probably don't get many buyers.
Maybe people will stay because they can't afford not to.