TexasBill

Foreclosure Stimulus to Boost Tech's Four Horsemen

It seems to me that the article is only looking at this only from the point of view of the homeowner, not the net effect on the economy. Yes, if the defaulting homeowner decides to stop making any payments on the mortgage he/she may use those funds on other things. However, the lender/investor is losing the use of that monthly payment. Therefore, doesn't the lender's/investor's loss balance out the defaulting homeowner's "gain" so that the net effect on the economy is zero?