Foreclosure cases could drag on for years
MSNBC takes a look at a man who has been fighting to stave off foreclosure for more than a decade. That's a scary proposition for banks and mortgage servicers, who are facing a challenging set of opponents as the foreclosure fiasco wears on. Ultimately, an actual foreclosure may make a mere modification look like a snap.
There does not appear to be a simple solution in sight. Banks are starting to process claims again, but you can almost feel the tentativeness, as state attorneys general take a closer look and lawyers continue to press the issue. Indeed, the legal machinery on behalf of those who are fighting foreclosures has been cranked up for a while now.
As the legal war wages, it's hard to predict when the backlog will be worked off. And that will keep the housing market in a state of stagnation--perhaps the entire economy as well.
The scary part is that if the economy muddles on, the ranks of would-be foreclosed upon households will only grow. All this could have been avoided if banks had been minding their stores a bit better as the foreclosure backlog mounted.
For more:
- here's the MSNBC article
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