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Now millions of people are purposely defaulting on their mortgages and get this it could actually help boost the economy how does that work.
We'll -- live in Los Angeles -- more need to.
-- -- -- John it is quite an irony but consumer spending is expected to rise nearly 3% this year at some believed he could have to do with the millions of people around the country who are no longer paying their mortgages for one reason or another.
And are now finding themselves with a lot of extra spending money.
We block is one of millions of Americans who stopped paying their mortgage she says she was duped into an expensive loan by the bank on this Palm Desert home when her monthly payments nearly doubled.
She reluctantly stopped paying and winning to a strategic foreclosure.
I called the -- I call -- and I did everything I could nobody was willing to work with me.
She took the money she saved over nine months of not paying the mortgage and put it towards a down payment on this more affordable home she lives in now.
He -- calculate the increase income withheld for mortgage payments around the country to be an estimated fifteen billion dollars this year.
Much of that will be -- right back into the economy.
Fifty billion dollars is a a large objection is the economy whether to responsible homeowner or not I mean there's still.
Filtering the money the economy if they're paying other Datsyuk they're buying.
Things are going out to dinner more.
But critics say not only is this unethical but could leave the economy in worse shape.
The bigger concern is that since -- -- supporting consumer expenditure.
What happens when their foreclosed and have to start actually paying for housing.
When that happens they won't be able to spend as much in the merchants who depend upon them will be hurt.
Now according to the nationals National Association of Realtors roughly 8% of mortgage holders are currently in default.
Experts say it real estate sales are of course tied to jobs and the unemployment rate would have to get below 8%.
Before the real estate market really it's moving again John back to you.
And Anita Vogel whatever works thanks -- it for.
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