Three scenarios from the foreclosure freeze:
WASHINGTON – Oct. 14, 2010 – Gregor Watson, a principal with McKinley Partners, a development company that buys foreclosed homes, explained to listeners on a Citi home-builder conference call that there are three potential outcomes for the foreclosure fiasco:
• Best case: Paperwork problems end up being technical issues that can be resolved quickly. The foreclosure process continues and the glut of foreclosed homes clears from the market.
• Medium case: Significant fallout litigation takes years to sort out, slowing the already troubled housing market even more.
• Worst case: The market grinds to a halt and title insurers refuse to insure mortgages involving foreclosed homes. “It would be devastating for the resale market if this robo-signer issue spiraled out of control,” Watson says.
Source: The Wall Street Journal, Dawn Wotapka (10/12/2010)
