if you understand that a home is an "illiquid" investment, you should understand that a bucket full of 10,000 mortgages can be far less liquid. At one time there was a more active market in buckets full of mortgages, but that market has come to a screeching halt. Not many of the mortgages are in default and going into forclosure, but the crisis is due to the associated fear. Mark-to-market rules now force banks to understate the true value of their buckets = bad rule!