Caoli said the woman told her "the house across the street, same model, with more upgrades sold in foreclosure for $315,000!"
Her client isn't the only one thinking about ditching her house to buy the better deal across the street. A number of realtors CBS station KOVR-TV in Sacramento talked to say it's already happening.
"Can you imagine if you had a same or similar home and your mortgage was half the price?" asks Caoli.
This is how it works. Bob paid $420,000 for his home. Then he notices the house across the street, with more upgrades, and is selling for $315,000.
So Bob, who has pretty good credit, decides to buy the cheaper house. He can't afford both, so then he walks away from his original home, letting it fall into foreclosure. That will hurt his credit, but he's willing to take the hit for a more affordable home.
"Is it wrong to steal when you're hungry? That's an issue that a lot of people are trying to figure out right now," says Caoli.
Caoli is sympathetic, but she doesn't endorse the practice of it. Other real estate agents were far more critical, calling them cheaters. They say the banks take a huge hit when their homes foreclose, and in the end, we all end up paying the price.
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