the south told me that he paid his house nearly half million, and he still has about 400k mortgage on it. But the similar house in his same block sale for about 300k. So he decides to let his house to go foreclosure and buy another house cheap than he owes to the bank. Meantime, while in foreclosure processs, he lives in a house for free.

remember, these are the people who can pay for the mortgage and willing to go foreclosure. this kind foreclosure will keep the pressure on the housing price. imagine, if he bought another house for 300k, and then his first house for (fire) sale due to foreclosure for, say 250k, what will he do then? default second house and buy back first house...

lol. it looks like he is going to short first house and buy second one as hedge...