A quote from the article:
Banking and housing analysts, meanwhile, fear the foreclosure document problems could prolong the housing bust, and hundreds of thousands of inevitable foreclosures will be pushed off into some legal limbo for years.
"If you are looking at the key in this country to economic stability, it's the housing industry," said banking analyst Nancy Bush of NAB Research. "This is a huge mess that helps nothing."
And some analysts feel that uncertainty about foreclosures could make potential buyers change their mind about purchasing foreclosed properties. That's because of fears that the former owners will turn around and sue.
It's really a double edged sword. It's paramount that any foreclosure is done right. On the other hand, I agree that by halting all foreclosures they will linger and then be lost down the road and we will have this surplus of cheap foreclosed homes for 10-15 years rather than 5-7 years. In turn, it keeps housing prices artificially low and promulgates more foreclosures as people hanging on waiting for an upward turn in housing prices may lose theirs unnecessarily at a later date.
We're going from very ugly to substantially worse. No doubt this might continue the recession/depression for many years unnecessarily.
