FORECLOSURES - WHAT A MESS

I'm amazed at the, recent, turn of events on foreclosures.

At one point, all the major servicers, known as the BIG 4, were accelerating foreclosures and FNMA/FMAC were setting records (Allbeit - depressing records) on monthly/quarterly foreclosures.

So, here we are in the midst of "oblivious" robo-signers and massive issues relating to MERS and the rights, within that institution, to directly foreclose on properties.

The fact that hundreds of thousands of real estate properties, whose mortgages were sold, and resold and resold - in the secondary marketplace - and now, likely, have missing links in their associated chain of title, is disturbing and will be resolved, but at what additional cost ??

Yes, the problem(s) absolutely have to be fixed, but watch the massive litigation that is about to take place, between title companies and servicers/lenders.

Where does this leave all of the current owners of real estate that they purchased as REOs ?
Will any of these, "recently", sold REOs fall into a grey area - split between a previous owner's claim, or fact, that the foreclosure was NOT, in fact, legal ??

One thing for sure, these are some major issues that aren't going away anytime soon.

Comments ??