nhsrikanth1

Foreclosure Stimulus to Boost Tech's Four Horsemen

I think he is talking about the six month foreclosure process during which the "owner" continues to live in his/her house but is not obligated to make mortgage payments. I assume that this includes the period when the owner starts defaulting before the lender gets wind of it and start the foreclosure process. It is only after this 6 month process will an owner be evicted and will need to rent.

Even then, the costs of home ownership is more than what one would rent (based on anecdotal evidence, a person who loses a SF home is more likely to rent a 2 bed apartment not a comparable home). This again provides the person with more disposable income.

On the flip side, a person who lost his/her home to foreclosure is likely to lose credit (either outright or by way of much higher interest rates) and that may limit their spending.