January 26, 2011: Now that the Massachusetts Supreme Court has upheld a lower court’s ruling that Wells Fargo did not have the proper paperwork to foreclose on two homes, the question is what that means for the broader mortgage market and the future of millions of foreclosures in or about to be in process? Not only does this decision affect individual foreclosures, but it throws into question the entire mortgage securitization process.
It’s coming, no question.
Today’s report from RealtyTrac serves as a warning to big banks, Fannie, Freddie and local communities; The foreclosure glut is coming, and they’d better be ready to get rid of that glut in a big way.
2010 saw a record number of bank repossessions, over a million, even with a big drop in volume toward the end of the year, thanks to the robo-signing scandal and ensuing foreclosure freezes.
“Early indications in January were that this robo-signing related delay will be over by the end of first quarter if not sooner,” says RealtyTrac’s Rick Sharga. “I think we’re going to see a significant spike in foreclosure activity early in 2011, and that will contribute in part to 2011 being a record year,” states CNBC.