In the foreclosure mess, some come out ahead and some lose. We've heard all about how robo-signers cut corners and even foreclosed on homes that were fully paid for. Now, somebody put a number on how much people are saving when they skip payments and stay in their homes until they're evicted: $2.6 billion per month.
The Wall Street Journal reports that the average borrower in foreclosure can go 16 months without making a mortgage or rent payment. The effect is most dramatic in hard hit areas like Florida and Nevada.
Some view the $2.6 billion as a form of stimulus. Instead of paying the mortgage, people can get back on their feet and spend elsewhere. Of course, they'll have to pay housing costs eventually, so nobody should expect this to continue.
[via Consumerist]
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