The end of the foreclosure era

Foreclosures are so over. No more “show me the note”. Enough of the “MERS can’t do that”. I won’t miss securitization audits. Never again file a skeleton bankruptcy the day before the foreclosure auction. Mortgage litigation is permanently out of style.

The Boston Herald stated, In 1974, nearly 30 years after Japan surrendered to the U.S., Pvt. Teruo Nakamura was discovered hiding on a remote Pacific island, thereby earning the distinction for which he is remembered: the last straggler among Japanese soldiers who hadn’t heard — or refused to believe — reports that World War II had ended.

The foreclosure war of the past five years is similarly over, but there remain holdouts in politics, academia and the media, who, to paraphrase Rahm Emanuel at the conflict’s beginning, refuse to let a serious crisis end.

The facts are not in dispute. Homes are in short supply now, and prices have risen. Foreclosure petitions have fallen to their lowest level since at least 2006 — before the crisis.

Only a holdout in a cave could fail to see the connection. When supply goes down, prices rise. When prices rise, borrowers can refinance or sell high enough to cover the mortgage.

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