News - National
Foreclosure freeze could undermine housing market
Posted: Oct 11, 2010 8:31 AM by Associated Press
Updated: Oct 11, 2010 8:32 AM
Karl Case, the co-creator of a widely watched housing market index, was upbeat three weeks ago. Mulling the economy while at a meeting at a resort near the Berkshires, Case thought the makings of a recovery were finally falling into place.
Today, Case's mood is far more subdued. In scarcely two weeks, he and other housing analysts have watched as the once-staid world of back-office bank procedures has spawned a scandal that threatens to further unhinge the housing market.
Allegations of possible mortgage fraud against major banks read like a corporate thriller: forged documents, phantom titles and disappearing paper trails.
The uncertainty could gum up the foreclosure process for years and delay a recovery in prices.
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