Question for the board on WaMu bonds

I know someone who has a Wamu bond (assuming corporate.) Can they consider it toast ? Or would a buyout by JP help them get some of it back ? Could they even try to sell it now ? Who would buy it ? They also have Pimco bond funds. And a Wachovia bond. And supposedly had one of the best investment firms advising them in terms of diversification. (more in bonds than stocks) since they are retired. Apparently the "best" never saw "this" coming, or at least didn't advise their clients to do anything much different. I'd have to imagine their are just a ton of seniors who have listened to supposedly sound investment advisors, and have still lost a lot of money. More disturbing to them is that many were likely in bonds that are getting hammered. I'm really very surprised there isn't much reporting of this yet in the mainstream media. I believe you are talking about folks who are getting hurt worse than the '87 crash, and a lot of it has been very "sudden' to many, and surprising.

Here is a question: Suppose you have a $200,000 CD and WaMu and they only pay off the first $100,000. Suppose further that you have a $100,000 mortgage with WaMu. Can you rightfully refuse to pay the mortgage and get it shown it as "Paid" where it was recorded?