When it comes to the on-going foreclosure fiasco, the truth is fast becoming less relevant. Bank of America (NYSE: BAC) may be entirely honest when it says it has not uncovered a single case of a foreclosure case brought in error (though some are snickering at that).

It may be entirely truthful in claiming that the errors it uncovered were relatively minor, transposed names, inconsistent information and the like. It may be true that Bank of America has enough of a process in place to support the resumption of foreclosures en masse. And it is without doubt true that many mortgage debtors have stopped paying and perhaps deserve a foreclosure.

But have we hit the point where the literal truth no longer matters? We may indeed have moved into the realm of "its doesn't matter what is, what matters is what you can prove."

All those tiny errors may have given the legal opponents of the bank enough ammunition to cast doubt on the whole process and the legality of foreclosures collectively. And that has been enough to create this pause.

What remains to be seen is whether the uncertainty is great enough to cause a long-term delay. If the bank has to attest to the validity of every piece of information it owns, it's going to be a long time before we work through all of this. What we really need right now are some national standards to allow the foreclosure process to resume.

For more:
- here's a Bloomberg article on the many probes and a timeline

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