Tilted
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What MA Foreclosure Court Ruling Really Means
Right, wrong, or whatever - this isn't good for the housing market. For one thing, I agree with Mr. Miller as he is quoted in this piece, in that some people in default on their mortgage might get the idea that they could get lucky (and, e.g., get a free house) if they contest foreclosure proceedings. That's just going to gum up the process and slow the pace at which the foreclosure inventory can get worked through. For another thing, it calls the whole securitization process into (further) question, and the housing market has long depended on that mechanism to create and maintain its bubble.
Right, wrong, or whatever - this isn't good for the housing market. For one thing, I agree with Mr. Miller as he is quoted in this piece, in that some people in default on their mortgage might get the idea that they could get lucky (and, e.g., get a free house) if they contest foreclosure proceedings. That's just going to gum up the process and slow the pace at which the foreclosure inventory can get worked through. For another thing, it calls the whole securitization process into (further) question, and the housing market has long depended on that mechanism to create and maintain its bubble.