Get a free house!

No, this is not spam. This is information that everybody with a mortgage should know about. According to Ilargi over at The Automatic Earth, folks caught in the real estate market melt down can keep their house and stop paying the mortgage. Pass this around to your friends. They will love you for life.

In an article entitled The Financial Destruction Of The Average Man, Ilargi explains that the $500 trillion Over the Counter derivatives market is going down the chutes and will probably take Lehman Bros. And JP Morgan with it.

This crash is too big for world central banks to bail it out.

This weekend’s meeting of four heads of central banks communicates the size of the OTC (Over The Counter) derivative disaster. It is a system that is broken. A bailout will require the printing of trillions of dollars worth of monetary stimulation making Bernanke’s helicopter drop look like chump change. The dollar number of pending derivative bankruptcies is the size of the mountain of garbage paper issued by just those who are to be bailed out. That number is greater than the total world economies.

There simply isn’t enough money in the world for central banks to buy up the mountain of worthless paper sold by those who need bailouts.

Well, we have all known that this would be the whimper that ends capitalism. See, for example, The end of capitalism as we know it, where I described the history of why this is all happening.

Now for the bright side:

So far courts have held that the only entity that can foreclose is the entity that actually lent the money.  The average guy does not know that with an attorney to protect him he has a free house!

The entity that actually lent the money has sold the mortgage and been paid. Therefore where is the incentive for original lender to foreclose? The answer is there is none.

Let me extend my sincere congratulations to all you happy new homeowners. You deserve a break.