I purchased a townhouse for ~$280K at the height of the housing boom. As the recession progressed, my builder went bust, and a new builder came in selling new townhomes for ~$150K.

I stopped paying my mortgage and walked away from the property. 2 years later, I called Bank Of America and negotiated to pay $2K to settle the debt. They accepted and my credit report is as if I never owned the home and walked away.

You can indeed buy your own debt at a steep discount. Its up to you to convince the debtor at how hard it will be to collect.

Disclaimer: I live in a judicial foreclosure state; it costs a substantial amount to perform foreclosures in my state, and also costs the bank to maintain the property between foreclosure and sale. Also, all of my assets were in retirement accounts, effectively judgement-proof.