Why suddenly banks in liquidity crisis?

As I understand, the foreclosure of millions of homes cause the banks to suffer liquidity crisis (no money to lend). But why? Just because millions of people suddenly could not pay their mortage the banks now have run out of money? How much total aggregate money from these foreclosure homes each month that should go to these banks? I think there could be something else which I do not understand the mechanism of, that cause banks in the US and Europe suddenly in liquidity crisis.

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