Foreclosure Halt May Spark Minor Economic Stimulus as Homeowners Live for Free

By Kyle Chezum Updated on 11/1/2010

11/01/2010

There's no doubt that the recent foreclosure fraud allegations will cost banks and investors a significant amount of money.  But homeowners who are halfway through the foreclosure process and aren't making mortgage payments will benefit from the foreclosure moratoria by staying in their homes for free until the mess gets cleared up.  In some areas, these eviction delays are expected to last more than six months.  This may lead to a significant increase in consumer spending.

Some foreclosed homeowners are even renting out their homes to tenants and earning pure profit.  Foreclosures, in some cases, take years to process.  The amount of money being made from these more recent holdups may prove to be substantial.

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