hello once again, i'm jon sko*pb, along with jenna lee, we are here in the fox news room. happening now in the white house, brand new strategy emerging, this as the president hits the campaign trail to shore up the crucial election. jenna: and a real twist, what makes this different from all the others you've seen and why police need your help today. jon: a north korea nuclear threat and fears it's reached an extremely dangerous level. we'll tell where you this warning is coming from and why the u.s. is closely monitoring the situation: breaking news out of los angeles right now, harris is on the story at our breaking news desk. harris. >> reporter: in sherman oaks, california, the valley in the los angeles area, you won't believe what we're following now. police try to figure out which way a guy driving a black honda went. this is a rite aid store and police say two suspects were wearing police jackets when they walked into this pharmacy and may have kid nam a farm pharmaceutical salesman, the suspects, driving a black honda. it looks fairly quiet because the action is some place away from here. they're trying to figure out which end of the parking lot this black honda left. the corner of fuller in sherman oaks, california. jon: keep an eye on it, thanks. jenna: as we continue with a fox news alert, inside the a shrine, we're hearing initially that ten people are dead. sid caiffe is on the phone. what do we know? >> we have received information that 50 people have been injured in this twin blast which took place about 45 minutes back. this blast happened at a shrine of abdullah shah hazii, a mystical form of islam. these blasts occurred close to the president's house which is called a lallal house, about 1 mile away and close to the sea south in karachi. this blast has hallmarks of the taliban which has previously attacks shrines in lahor in pakistan in which 30 were killed and over 100 injured. we don't have information now if these were suicide blasts or remote controlled detonations but we'll be getting it shortly. jenna: we're working on getting pictures into this newsroom. as soon as we get it, we'll share it about our viewers. sid caiffe, thank you very much. jon: a nightmare scenario for the u.s. banking system and the national economy, a foreclosure freeze in some two dozen states threatens to spread, fueled by judges who are stepping n. ruling that lenders have no right to toss homeowners to the curb without the proper paperwork, this as the justice department starts to look into the foreclosure mess. top democrats on capitol hill say they want hearings and mortgage rates just hit record lows. nice, if you can find a bank to actually lend you the money to buy a hoefplt james rosen is live in washington with more for us. bring us up to date, james, on the latest information. i know this story is changing every second. >> reporter: yes, and it's reminiscent of the s & l scandal of the 1980s. possibly tens of thousands of foreclosures here, cases where people were actually econvicted -- evicted from their homes appear to be -- to have been carried out on flawed documents, it will take years to sort it out and have investigations in all 50 states. connecticut, delaware, florida, maryland, massachusetts, north carolina, ohio, texas, officials have all called on various combinations of the -- on j.p. morgan, bank of america, although i'd and wells fargo to take action, j.p. morgan, banc of america and although i'd have responded by halting foreclosures in 23 states. >> president obama formed the financial fraud enforcement task force to look at all mortgage fraud. there is a mortgage fraud component of that body, we are aware of the charges that have surfaced in the newspapers in the last couple of days and are look at them. i really can't say much more than that, though. >> reporter: william burnett, president of the virginia association of mortgage brokers told fox news this will have enormous repercussions with real force, shutting down businesses and collateral damage to privilegeral industries like the home improvement sector, jon. jon: what about the people who represent us in congress, james, anything on capitol hill doing anything about this? >> so far, jon, it's been the states attorneys general who have taken the lead but as general holder commented, federal officials are springing into action, mindful of the effect that is a scandal like this could have an next month's elections. more than 30 members from california, one of the states hardest hit by foreclosures and led by speaker nancy pelosi and zoe laughlin have to holder and the -- and the federal reserve and the currency which regulates banks calling for intervention. laughlin said tuesday it appears the problem is part of a pattern in the mortgage industry, not just a series of isolated incidents. robert menendez, who chairs a key committee on housing issues and al franken of minnesota have asked the investigative arm of the congress, the government accountability office, to examine whether the federal regulators that oversee mortgage companies were asleep at the switch or worse. one final note, some bank executives have already come out and admitted they signed these documents without reading them. jon: unbelievable, thank you, james. a little later on in "happening now" jenna is going to be talking to a couple of experts on this huge wrinkle in the housing cry circumstances what it means for for your friends, family, neighbors. send questions to us at happening now, foxnews.com or post them on our blog, fox news.com/happening now. jenna: certainly a big story there. we have another one in politics. a democratic think tank says to president -- for president obama, his agenda appeals to librates and the party needs moderates in the mid terms. let's head to maryland where the president is due to arrive in a few hours. wend el goler is already there. >> the president is rallies students at boey state university, an historically black college outside washington, d.c. it's the second time the president has tried to fire up the youth vote. earlier he was at the university of wisconsin. he was here campaigning for mark o'malley and this is about as good as it gets for the president. o'malley welcomes his support and maryland gives mr. obama a 60 percent job approval rating. now, late last month, o'malley attend the white house for the signing of a small business jobs bill. he leads his republican challenge by 11 points, 52-41, robert erlick, the former governor of maryland, and among black voters, that margin is 83 percent-9 percent. the two maryland suburbs of washington, montgomery, prince georges county, hugely supportive of both the president and martin o'malley and afl-cio leader, promise to deliver those suburbs and said the rest of the state, in his words, can do what it wants. jenna: wendell, it's important to point out it depends on which region of the country we're really look at here for what kind of competition the president and the democrats face, right? >> you're absolutely right. the president's appeal to liberals, unlikely to have as much impact on other elections as it is here in the maryland suburbs of washington. he'll have to pull in more moderates and independents for democrats to win. a group called the third way says that the number of people identifying themselves as liberals has fallen so much since the 2008 election that statistically, liberals are simply unable to deliver election toss democrats as much as they could in the past. here's a bit of what ann kim had to say: >> they both make up the smallest this year of the electorate, they've been around 20, 22 percent of the electorate. mathematical, you don't win elections with 20 percent of the voting applicable. >> reporter: anne kim says the number of people identifying themselves as conservatives has grown so much since 2008 that they need a much smaller percentage of moderates and dependents to actually win elections. jenna: it's hearing to -- interesting to hear that breakdown. wendell goler, thank you very much for us today. for us tphao*bgs -- fox news is your headquarters for all political platforms. log on to foxnews.com-heaq. check out the politics, correspondets like w*ebdel, for example, always posting the latest information you need at foxnews.com. jon: back to that breaking news story in south bend, indiana. harris is on it from the breaking news desk. >> reporter: we're getting word that several hundred people were asked to leave the offices in the downtown area of south bend earlier this morning, and it hasn't been all that long that they've had to basically make a run for it, this could be a very dangerous situation when you have a high pressure gas line that breaks in the middle of a city, and that's exactly what's happened. so there's a 4-block-square area where they've evacuated, they're rerouteing rush hour traffic. you mentioned earlier as we opened our newscast here that this was a mess. it's a dangerous mess, and they are working very, very fast, the northern indiana public service company to try to get a cap on this high pressure gas line that was hit bay worker who was working on a street project this morning. back to you guys. jon: we all remember what happened in san bruno, california, that's why they're treating this with such an abundance of caution. harris, we'll check in with you in a bit. jen yuen this into fox news, we have brand new video from miami, florida where we're seeing incredible flooding there. we'll bring you that as soon as we get it. there it is there, you can see been the street. you don't see any rain, obviously, but there's an lot six -- a lot of tough weather, high tides, helping this out and not in a good way. janice dean says even if you see 2 inches of water, you're not supposed to drive through it. jon: you can get washed off the road in some of these culverts. that's not such a problem in miami where things are flat but you can certainly stall out an engine when you go through that deep water. never a good thing to do. jenna: we'll continue to watch the video out of miami and in the meantime, to other news as well. jon: bad guys on the run, a high-speed place chase, this one in central florida but it doesn't end the way most car chases do. we'll tell you why, after the break. jon: is man hunt is on right now in central florida for two guy necessary a stolen white infiniti, this is dash cam footage, there is the car, you can see it there. lots of dramatic car chases have run on this channel and most of the time cops wind up catching the bad guy but this high speed chase lasted through two counties, near orlando, and the suspect got away. joining us now, lieutenant john harrell with the lake county sheriff's oeufplt how did you get on to them in the first place? >> well, our agency had received a call regarding a burglary in progress in our county, and as deputies responded to the area, they met the suspects coming out of the subdivision where the victim lived and at that point they attempted to pull the vehicle over, it stopped briefly when it was met with another oncoming deputy and at that point as you can see on the dash cam video they put it in reverse, slammed or deputy and the chase was on at that point. >> they had an infiniti and your patrol cars couldn't keep up, huh? >> that's exactly right. as can you tell, they were faster than we were and we had stops laid out, did everything we could to stop them. because of the fact it was a violent crime they were committing, they were trying to get into a house that was occupied and we did everything we could to stop them but they were able to avoid the stop sticks and they were able to step it up a notch. jon: spike sticks that what you put down to blow up the tires. you found the car? >> it was recovered in orange county, and the detectives are aware of that and what we're trying to do is get the word out to everyone in central florida to see if anyone may recognize them or be familiar with them and get their identity to us so we can get them in custody and off the streets. detectives have been looking at a number of burglary necessary our county and it really looks as though they're connected to several burglaries. so we're hoping to get them identified and in jail. jon: we've got the tipline on our screen: this was a stolen car, correct? >> that's correct. we're hope to go process this, hopefully -- it was recovered in orange county, stolen out of another neighboring county, these guys are definitely violent offenders, appear to be habitual offenders, they are involved in several crimes and quite possibly throughout the central florida area. jon: we thank you for the information and our viewers will be on the lookout for these two and we appreciate it. >> thank you. jenna: want to bring you brand new video that we've seen from the terrible storm damage that happened in arizona yesterday when the strange tornadoes touched down in the area of belmont. we're getting some of these local pictures, not exactly sure what area this is around, but the worst damage from the tornadoes was bell phofpblt and there were about 15 homes so badly damaged there, again, very unusual for this area to have these type of twisters touch down very early in the morning yesterday and you can see the damage is profound. you had, again, about 15 homes being damaged, multiple families being evacuated, there were even reports of a freight train kind of being derailed because of the storm and several rvs damaged, but you can see on our screen right now, a lot of the damage is among the forestry there, but just very wild weather happening around this country and we'll continue to watch as we get new video in from arizona today. the foreclosure crisis, how it can swamp america's banking system and economy and what this means for your family, your home, your wallet. we put the question to our panel of financial experts next and we're going to be asking your -- answering your questions now. e-mail us, happening now, fox news dom -- foxnews.com or on our blog. even in the best economic times, not a lot of folks would be in the market for this. check out that. that's pretty! we're going to show you everything about this enormous pink diamond. it's going on the auction block today. how much is it worth? how much will it fetch? we have that ahead. jenna: the houses cryoo housing crisis is becoming more and more confusion every day. the banks, courts, trying to figure out who legally owns millions of foreclosed homes and whether they should have been foreclosed on in the first place. what does this mean for the housing market, your home, our financial system overall? drew kessler is, mark madison, and fox news contributor charles payne, ceo of wall street strategy ies and author of be smart, act fast and get rich. welcome, gentlemen. it's great to you have on this story, which is really a big one, charles. >> yes. jenna: what does this all of this mean, what we're hearing of reports of this mass confusion in the foreclosure market? >> well, it means that they're probably going to have to put the brakes ton and really go back to square one. let's not forget, a lot of this crisis came but they chopped up the markets -- mortgages, they were sold, resold and otherwise disbursed all over the place but recently it's the robo signings, where you have one person signing off on 10,000 foreclosure as week and of course we also had someone who admit that's they might have signed off on 8000 of them without reading them. so it's back to basics, and what it means is that it slows down the ultimate recovery of the housing market, and if you want to connect the dots, slows down the ultimate recovery of our economy. jenna: drew, you work in the mortgage market every day. or questions, they want to know what happens when you've been foreclosed on and when you've been foreclosed on and it's not legit, what happens? >> you're looking at a marriage class action lawsuit, you're going to have a lot of homeowners or would have been homeowners, now taking legal action to either refund the money they lost in the foreclosure or take steps necessary to possibly even get back into the house if it's vacant. this is opening up so many loopholes on situations that might not have been done properly. bottom line, when they took the mortgages out originally they acknowledged the fact that they're signing a note and paying back debt. for whatever circumstances, things happen, they didn't make the debt, they went into default and they lost the house. this might be an opportunity to jump back in or get monetary benefit for having these issues created. jenna: marks, you're anevidentor. does this send slivers -- shivers through the market in i'm seeing reports of a t.a.r.p.2, that's what we're going to need to get out of this second phase of the housing crisis. >> markets need two things to be effective and efficient, number one, ease of trade and number two, liquidity and all this minutia and confusion kills both. what it's going to do is slow down the real estate recovery to the extent that we even have one at all and it's also going to hurt investors. if i'm owning stocks in a bank it's going to slow down the ability for the bank to recoup their principal and if i'm trying to buy a home for its true value, this is going to art officially keep that price up and new homeowners are suffering. these people at the end of the day owe the money, they took the loan, they took the risk, no one likes to see anybody lose their home, but this isn't ultimately going to be good for anybody. jenna: but charles, the banks got taxpayer money, they got taxpayer money to help us through this crisis. they were supposed to work, even with the people that defaulted, and try to either keep them in their home or at least again stability to the market. they got billions of dollars. what happened to it? >> not only did they get billions of dollars but more billions were thrown in with things like the program which has been ought utter disaster that could have saved 4 million homes, maybe it might save 400,000 homes. i think banks should have tried harder, although we must say they have modified a lot of mortgages, but this might go to the heart of the matter, jen kwrarbgs that so many probably could not afford to be in those houses from the very beginning. jenna: drew, do we even know what a home is worth these days, do we have accurate knowledge of the value of real estate? >> you have to do comparables and see what's selling in the neighborhood. you can't go back a year, two years and use those prices. you have to go by what's recently sold. the past three months shows you what your house is worth. going back fort isn't realistic and going forward things should be stable simply based on value and we'll see where this foreclosure market shakes out. jenna: are we going to see more government intervention? >> that's the main scheme of this government we're in right now. the average closing for a foreclosure in florida, 573 days, that's over 19 months. that's plenty of time to get your house in order or unfortunately find a new one. jenna: real quick, charles, your thoughts on fixing this? >> it's going to be a mess because the government is getting involved and perhaps even the federal government so this pushing the can down the road to ultimately the bottom of the housing market being next year rather than this year. jenna: unbelievable, drew, mark, charles, thank you for working us through that, we appreciate it. this is a story we're going to follow closely. as you might imagine, this foreclosure mess is very political right now. don't forget, we're 26 days away from the midterm electricals and now we're hearing some politicians are pushing to halt all foreclosures nationwide. what that means not only for our economy or for politics as