"Loan chaos may pose wider peril," by Brady Dennis and Ariana Eunjung Cha:
"Millions of U.S. mortgages have been shuttled around the global financial system ... without the documents that traditionally prove who legally owns the loans. Now, as many of these loans have fallen into default and banks have sought to seize homes, judges around the country have increasingly ruled that lenders had no right to foreclose, because they lacked clear title. These fundamental concerns over ownership extend beyond those that surfaced over the past two weeks amid reports of fraudulent loan documents and corporate 'robo-signers.' ... For struggling homeowners trying to avoid foreclosure, it could mean an opportunity to challenge the banks ... But it also threatens to leave them in prolonged limbo, stuck in homes they still can't afford... For the fragile housing market, ... it could mean gridlock and confusion for years. And there is concern in Washington that if the real estate market and financial institutions suffer harm, it could force the government to step in again" http://wapo.st/cIduRG
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