Wednesday, October 13, 2010

CitiBank Report: "Foreclosures Gone Wild"

Below is CitiBank's report on the problem, and the consequences, for the housing market. Via The Market Ticker.

Adam Levitin, a law professor at Georgetown, says there are three possible outcomes for the "robo-signing" debacle:
  • In the best case scenario, the issues are simply technical, the situation is resolved and the foreclosure process continues. Many believe housing won’t recover until the glut of foreclosed homes clears the market.
  • In the medium-case scenario, litigation ensues and the matter takes years to sort out. That will inflict more pain onto the already troubled housing market.
  • In the worst case, the issues become a “systemic problem” that grinds the mortgage market to a halt and title insurers refuse to insure mortgages involving existing homes. In other words, housing Armageddon.
CitiBank document removed from Scribd.


rvr said...

I read the report. My money is on Armageddon.

Two factors influence:

1) that there is no federal power over these state foreclosure actions, which vary widely in process and venue;

2) the litigious nature of our society. There is a market for litigation.

John Doe said...

And then there's this (linked in previous post) to get us to Armageddon