Via LegIron I came across this, which if true is terrifying. If you’re not even vaguely aware of what’s going on with mortgages in the US then be prepared for a hell of a shock. The bottom line of the article is:
Long story short (since this is the short version): A lot of the foreclosed properties might not have been foreclosed legally. The people evicted might still have a right to their old houses. The new buyers might not actually own the REO’s they bought off the banks. The banks could be on the hook for trillions of dollars, and in the sights of literally millions of lawsuits.
But go read the whole thing, this has the potential to send a hell of a shock back round the financial world and beyond, and the immediate question that sprang to my mind is to wonder how different things are over here and elsewhere. It wouldn’t surprise me if a similar situation lurks over here for as Captain Ranty often observes the laws have the same basis and you can’t just go round selling other people loans.
