Last night on 60 minutes America met the Fraudclosure crisis. I began talking about this topic last summer when news broke that banks were foreclosing on homes when they did not have title to the properties.
Out of the 48 million mortgage holders in our country, 11 million are currently underwater, meaning they owe more than the home is worth.
After watching this clip last night, many of those millions will second guess whether they should send their next mortgage payment in the mail (thus throwing money away). Some may decide it would be easier to live for free for what is now an average of 537 days before homes are foreclosed on.
What this means for home prices? I'll leave that up to your imagination.