Ok, you loose your (worthless) house, but you've been living and consuming like a prince, and nobody can do anything about it.
Exactly, MBS are just securitised houses, just like monetized assets, different way to make things trad-able, they are essentially some kind of certificate of value. Since the house value crashed due to large amount of default, FED came out to support the price, the only one benefited is the one borrowed heavily and stayed in the same boat as banks