Here’s the deal. Most states that require judicial foreclosures, also require that the lender be in physical possession of the original note and trust deed, and the foreclosure process requires that the owner of the loan attest that those original documents have been reviewed. In deposition, under penalty of purjury, employees of BofA (as successor in interest to Countrywide) have told plaintiff attorney that, in the ordinary course of business, those original notes and trust deeds were NEVER transmitted to the note purchasers, and were, in fact, retained by BofA (or Countrywide). Thousands? More likely 10’s or even 100’s of thousands of loans. Those loans should NOT be foreclosed until the lender has met the legal requirements to file the foreclosure.
I’m not disputing those loans are in default. I’m sure it’s only a tiny minority of loans that are actually current. (Though that number should be zero!)
As to market sanity. Do you think it’s an insane market now? I think it’s pretty sane. It’s hard to sell a house because there is an over supply. Get used to it. We probably have 24-36 more months of it. More and faster foreclosures won’t help that. It sounds to me like your definition of a sane market is where there is a flood of foreclosures so you can make a quick buck. I don’t know what’s sane about that.
