Tuesday, October 5, 2010

The Foreclosure Mess: How Much Worse Can It Get? - ABC News

The Foreclosure Mess: How Much Worse Can It Get? - ABC News

"I see it as this: The public are the Little Dutch Boy, with their finger in the dam. The flood gates haven't even opened yet." The scandal, she says, has energized homeowners. "The public is so much more empowered over this. You have a legal argument, now, to go in there and fight Goliath. We're choking them on their own documents."

Just digging up the paperwork, she predicts, will be a Herculean task: "The banks tell me it can take four to six months to locate a document. They'll need to go back and get the documents. They need to say they have the real ones or admit they don't."

During that process, she thinks, there needs to be a national moratorium on any more foreclosures. Banks that can't produce valid paperwork will find themselves in a tough spot, unable to foreclose.

"They're going to have to give some amazing deals--real reductions. They're going to have to sit down and work with customers. That's what they should have been doing all along."

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